Thursday May 16th
I am seeing signs that the General Markets are close if not already at their next lows, and as expected, I also believe that Oil has put in its lows. I want to discuss what this might mean going forward.
SPX – We are now late in the timing for a daily cycle low, and price is pushing on the 10sma and the down trend line, so a break above that area should imply that the lows are in place. That would be a low risk entry with a stop right under the low. Can this still drop to the 200sma? Yes, so that is why it was best to wait for further upside confirmation, but WE ARE CLOSE OR THERE NOW.
NASDAQ – We have the same thing on the NASDAQ, SOX, DJIA, etc., except that the DOw sits right on the 200sma, and the SOX is stronger, hugging the 50sma underside. Again, WE ARE CLOSE.
Once the lows are in place, it is reasonable to expect the Markets to run higher or stay above these lows for weeks.
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WTIC – This chart was in yesterdays report. I think Oils lows are in place, and the Oil inventory report was released…
WTIC – Oil has broken the downtrend line and is almost above the 10sma, I think Oils lows are in place. For leverage, Buyers can enter OILU, UCO, or UWT ( UWT is an ETN, some do prefer to avoid those).
XOP ( GUSH) – The XOP & XLE have stabilized and crossed the 10sma ( OIH fell sharply and is turning higher, but hasn’t crossed the 10sma). This would be a buy with a stop under recent lows. That makes it lower risk. GUSH is leveraged. Many Energy stocks should begin to set up bullishly too.
OAS – My watch list for energy does show some low risk entries that could find follow through. You can look for signs of strength in companies like OAS, LPI, WLL, AREX, AXAS, etc – see if they are crossing their 10sma like OAS here.
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GOLD – Gold is on day 9 with a day 8 peak. It would expect it to hold above this trend line.
SILVER – We are still waiting for SILVER to break out higher and its low occurred only 3 days ago.
GDX – GDX lows are now well behind us, but price has not moved high enough off of those lows to make us feel more comfortable. It actually has a day 9 peak so far.
PRECIOUS METALS – I want to discuss something that crossed my mind in the the Precious Metals Sector, but I want to do so without unnecessarily alarming people. Let’s just think about this as 1 of many possibilities. It is best to at least consider it, than to ignore it.
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Many here probably remember that at the last Sept ICL for GDX, Miners did not rally strongly until around Oct/November. Please see and read the chart. In fact…
They chopped around the lows and GDXJ ACTUALLY BOTTOMED AGAIN IN NOVEMBER. I remember that this upset people holding JNUG. They sold it and many got left behind, unable to convince themselves to buy again as it ran off higher. WHAT IS MY POINT? LOOK AT THIS CHART OF GDXJ– It really started running in November, straight up, and…
OCTOBER & NOVEMBER was when the Markets really started to sell off. So my thought right now is that if the Markets bounce here for a few weeks, it may cause Miners to get choppy. I don’t know that for sure, because BOTH THE MARKETS & MINERS RAN TOGETHER IN JAN-FEB, as seen on this chart & the above chart, so it is possible that they can run higher together. I am just preparing my readers here for the possibility that when the general Markets bounce, Miners MIGHT do what they did in Sept & October.
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This is just one of those observations that I had while looking at charts, but it is also very possible that Gold, Silver, and the Miners are foreseeing a top in the markets coming soon, and the accumulation has already started. That means that at this time, the General Markets, Oil, and Precious Metals could also all move higher together. We just have to wait and see, but we do have at least a DCL in place for the Miners, and GOLD DID BREAK THE UPPER TREND LINE , which usually signals an ICL, so for now that is how we’ll view it.
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Below I will have a few trade ideas, and as the markets confirm a dcl, I think there will be many more. Enjoy your Thursday trading!
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~ALEX
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Though MJ Stocks are choppy and do regularly consolidate their gains, they are in a BULL MARKET. Every time they sell off, I read all the doubters discussing how they won’t make money, how debt is increasing, and they struggle to keep up with demand, so they will not fair well. Well, some of this is true, but THAT will not stop a Bull Market in a sector with rapidly growing demand, and trust me- These are in a Bull Market . They currently look to be readying to begin another up-leg and these Up-legs are often very big and rewarding, so lets discuss a few MJ STOCKS.
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ACB – Yesterday I mentioned that I felt many Marijuana stocks were starting to set up Bullishly. I posted this gap fill reversal with ACB and discussed their earnings release as a possible trigger for buyers. Look for a move above that 10sma…
ACB – After a GAP DOWN, Buyers definitely stepped in, and I think that ACB is about to rally again after a 2 month consolidation. In 2019, ACB ran from $5 to $10. That is not a Bull Market? This is a normal consolidation, and it can now run to $12 or more, in my opinion.
HEXO – In 2019 alone, HEXO ran from $3 to $8.50. That is not a Bull Market? THAT is a BIG RUN, yet people doubt that it is in Bull Mode because it is a bit choppy? 2 years ago HEXO was $1.oo. $1 to $8.50 is not a Bull Market? So here it is reversing at the 50sma again. Huge volume has been coming in, and I posted that I bought this yesterday in the live commenting area. It is still a buy, especially if it dips down today or remains choppy above the 50sma.
OGRMF – In January, OGRMF was a Buy around $3.50 as volume came in and the sector was heating up again. I posted this chart …
OGRMF – This was a 2nd buy as it bull flagged at $4.30. And…
OGRMF – It was not an easy ride, it got choppy, but it ran from $3 to $7.50! THAT is a bull run, and after a 2 & 1/2 month consolidation, it looks ready to break out and run again. Many MJ stocks are setting up bullishly again. I will continue to cover this area.
SEMICONDUCTORS HAVE HELD UP WELL ( SEE THE SOX), SO I WANTED TO POINT OUT A COUPLE OF THEM HERE…
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RECENTLY ON MAY 10 I MENTIONED LOOKING FOR STOCKS THAT DID NOT SELL OFF AS MUCH AS THE MARKETS, AND I MENTIONED A FEW LIKE AMD, SHOWN HERE FROM A PRIOR REPORT, ON THE 50SMA.
AMD – As the markets continued to sell off, AMD has continued to hold up, so this has to be considered strong, above that 50sma. When the markets turn higher, this will probably break out and run.
CREE– This also held up on the 50sma during the market sell off. it ran from roughly $40 to $70 this year, and may be ready to go higher again with the markets.
GOGO – I also pointed out GOGO as a strong stock on May 10. This set up was a buy if it breaks out..
GOGO – This stock was not waiting for the markets.
JD – Reversing off of the 200sma, JD has strong volume coming in and it looks ready to make another run higher. What I really like about this stock is…
JD – The Bigger Picture has the recent pull back to the 200 sma as a normal dip after a strong run, and it looks ready to break from a 1 year down trend.
So there are many set ups forming now that the selling is nearing its end, and I will cover more Buy Set ups in tomorrows report as they form. I think that what we have here and in recent past reports will be enough for now. If you want to, You can look at charts of GPRO, ZNGA, – they are also leading the way higher. Also a few of the shippers seem to be setting up…. look at the 50sma on SB, SALT and SBLK. They look like BUYS ( And see TNK, NAT, and NM as Shippers bursting higher ) etc. So we have many stocks setting up as trade opportunities.
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MY ADVICE WHEN I POST A NUMBER OF STOCKS SETTING UP BULLISHLY HAS BEEN TO KEEP A WATCH LIST WHEN I MENTION VARIOUS STOCKS. WRITE A FEW DOWN IN A NOTEBOOK OR ON A POST IT NOTE, AND WATCH THEM DAILY. SOME CAN BE BOUGHT AS THEY BREAK OUT HIGHER ABOVE THE 10SMA, OR DROP BACK TO TAG THE 50SMA, ETC.
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You may recall my BITCOIN BUY call, when I loved this base set up, and then…
BITCOIN – It really took off and has been running higher bullishly. Well…
DASH – These other crypto currencies are set up with the same bases. These are great looking bases and the gains are very good. DASH looks ready to break out here, and the volume is encouraging. It may pull back first, since it already ran from roughly $100 to $140 in a few days.
ETHEREUM – ETH has a similar base and started breaking higher too . This sector is firing on all cylinders ! This just ran from $150 to $243 in weeks, so it also could pull back, but over time I think that these are going higher.
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RIPPLE – So I wanted to mention that RIPPLE looks to be lagging a bit, and I would think that it and a few others should play catch up soon. This is the same base formation…
