Wednesday May 15th – Watching And Waiting
The General Markets reversed higher on Tuesday, however…
SPX – Please read the chart. We have seen a couple of reversals without follow through recently as this sell off continued. A swing low is due any day now, the timing is late on day 46, but this still could drop to the 200sma. It is best to remain patient until we get follow through higher. A break above the 10sma should signal that a dcl is in place.
MJ ETF – The MJ sector seems to be finding support at the 200sma. It did reverse with pretty good volume Tuesday, so I am going to be watching this sector going forward. It may move higher when the General Markets bottom. I will mention a couple of improving MJ stocks below too, but there are more than just a couple.
XLU – The Utility Sector has gone sideways during the market sell down, so I wanted to point out that Utilities will be a buy when the markets run again (and this may already be a buy actually). This looks ready to break out, so below I will point out 3 Utility Stocks that are bullishly set up already .
WTIC – Oils inventory report comes out on Wednesday morning , and this still looks like a dcl formed and it has held support. Maybe the report will give it some juice to push it higher.
GOLD – Gold has its daily cycle high on day 8 and this still has a bullish break out and an overall Bullish look to it. We are looking for more follow through.
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EDIT: As I proof read the report for typos this morning, This is GOLDS 2 hr chart as of 7 a.m. eastern time Wednesday . It looks to be forming a large cup and still looks Bullish…
GDX – GDX & GDXJ sold off on Tuesday, but they bounced off of the 10sma and started to recover. EDIT: If that cup on Gold this morning pushes even higher, GDX should move higher too.
GDXJ – The next Bullish attempt for GDXJ is to get a Push above that 200 sma, but it was nice to see it drop to the 10sma and recover too.
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There was not a lot that changed for the Markets on Tuesday.
– The General Markets are trading between the 50 sma & 200 sma and could still sell down a bit more to that 200sma area, but it is time for a dcl to form.
– Oil is patiently waiting , after finding support on the 200sma.
– Even with a little selling, the Precious Metals sector does still look to be acting correctly and remains bullish above the DCL for now. I will post a few additional interesting chart set ups below, while we are waiting and watching to see how this continues to play out.
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Enjoy your Wednesday trading!
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~ALEX
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ACB -The chart shows that ACB recently dropped, filled that gap, and started to move higher on Tuesday. Earnings were released after the bell and ACB initially went higher but then ended the session down 18 cents. So it was up 38 cents in regular trading and lost 18 cents in A.H. Their revenues grew, but so did their debt, I’ll be watching this one Wednesday.
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TLRY DAILY – TLRY has been selling off relentlessly, but started to form what looks like a bottom here, with strong divergence. It closed up $2 during the day, and it is up another $2 in After hrs. It released earnings…
Revenue increased 195.1% to $23.0 (C$31.0) million, compared to the first quarter of last year, Losses grew too. TLRY was up $2.00 by the time the after hrs session ended, at $50.72
TLRY DAILY – IF TLRY can ever get moving to the upside in more of a trending move, it has great potential. Currently it is base building after a parabolic blow off top.
EDXC also released earnings, so this was early in the morning, it started to push above the 10sma, and…
EDXC – This is EDXC at the close. I actually bought this one again and added right here at the end of the day too. It has spent the last 3 weeks consolidating those gains and is now oversold. It looks ready to at least run to recent highs and a stop can go under the 50 sma.
HEXO – Hexo is back at support, so I’ll be watching to see if it wants to start moving higher again. These small runs are not really small. Each of the last 2 runs off of the 50sma has been over $2.00 on a $5 or $6 stock.
AXU – AXU sold off and recovered, and that is encouraging, since we know that Miners can just sell off too.
IVPAF DAILY – This has actually been POPPING Higher when Gold was selling down. And…
IVPAF WEEKLY – That run in 2016 was about 700% and then it dropped to the 200 week ma and formed a base. I don’t always like the volume on a daily basis, but if someone was thinking of buying & Holding a Miner that has performed well or held up well, this fits that description. I think that it bottomed in 2018.
LODE DAILY – I own lode as a buy & hold , and it actually dropped to that red 50 sma by the close ( I captured this during market hours for the trading area below the report). I still like it, and like I have mentioned before…
LODE WEEKLY – It is the big picture that shows the potential. If LODE can stay on track, this recovery can pay off nicely.
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UTILITY STOCKS – The XLU looks ready to break out already, so Let’s look at 3 Utility Stocks.
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NEE – This Electrical Power & Infrastructure Company was not really affected by the recent market sell off, and after a small shake out at the 50sma, it may be ready to break out & run to new highs. Slow and steady, it ran from $165 to $195 this year and may be a good trade for those liking something less volatile or Choppy.
XEL – You can see that this is another slow & steady stock, but it also has had minimal pull backs. It hardly broke the 10sma on the ride higher. During the market sell off it formed a cup, so it may already be set to break higher again ( or chop sideways to add a handle). This can be bought with a stop under the 50sma (loosely). It doesn’t drop that much on its choppy ride.
PPL – PPL pulled back to the 200 sma in December and then reversed higher. It is now breaking out from the down trend, but has the 50sma as overhead resistance. It can be bought here or after breaking above the 50sma.
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YRD – This is a Chinese business sold off from $45 to $10 and has based out and started to recover. What I like about it is that it has not dropped with the US Markets , or with the Chinese Markets during the Tariff Talk.
– It found support at the 50sma in March and then broke above the 200sma and has been crawling along the 200 while the markets sell off. When the Markets start to move higher, this could be ready to move higher.
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I yesterdays report I had charts of FNV, KL, MAG, GOLD, GFI, GSS, AGI, BTG, VGZ, etc , so keep a watch list ( or go back and review yesterdays report to see the charts) , and as this sector bounces around, you may find some low risk buy opportunities as they drop to a support area.
MAG – MAG is crawling along the uptrend line, so it can be bought here with a stop.
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As a side point:
MARA – I posted this simply to show how much these blockchain stocks can move – they are not for everyone! We may be seeing MARA dropping back to either the down trend line, the 200sma again, or the lower trend line. I have ridden this stock for a long time, and I think that it is the hardest one that I have ever traded. It has GREAT 30%+ Days, yet then it drops 10% for 2 days in a row. It is VERY CHOPPY, and not for those that cannot take the good with the bad ( or you must keep positions small).
