Friday June 14th – Progressive Steps
Hello everyone, I was away from my desk Thursday and will be again on Friday, Saturday, and Sunday. It was refreshing to come home and find that GOLD, SILVER, and MINERS were staying healthy, and a few Miners really Popped nicely. I will discuss those too, so even though this will be a bit of a shorter report, it should still prove to be helpful.
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SPX – The ‘pause’ in the SPX is just a pause at this point. No sign of real bearishness yet, but it is also early in this daily cycle. Time will tell.
WTIC – An Oil Tanker was attacked and it can be viewed as a threat to Oil supplies, so Oil reversed sharply. Can it recover that 10sma? The volume was good, shorts may need to cover, and it may find a double bottom if the threat continues.
GOLD #1 – Golds move off of the 10 sma continues. Volume has lightened up so it may just be test of the highs again before a pull back…
GOLD#2 – Possibly Testing the highs, maybe even about to add that handle that I have been talking about.
I want to mention here that if GOLD just goes sideways, it can still cause a Bullish Reaction in Miners. There will be a sense that “Gold is preparing to break out”, and traders may start adding to Miners before the break. Also…
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SILVER – Gold bottomed in early may (Due for a rest), Silver Bottomed Recently! GOLD may go sideways and build a handle, yet SILVER can break out above these moving averages & drag Miners higher too ( Silver stocks?)
GDX – GDX volume needs to increase soon, or this will run out of steam. This cup may also begin to put on a handle, as mentioned in past reports.
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Below I want to discuss Miners. Enjoy your Friday trading!
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~ALEX
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I have been saying that we should own Miners at this point. Some Miners seem to be making slow progress compared to others, so let me show you why holding even these ‘laggers’ can be rewarding , as long as they are healthy looking.
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CDE – I pointed out CDE as a beaten down Silver stock on sale. WHen I posted this chart, it broke out & began to show follow through, so these BULLISH DESCENDING WEDGES breaking higher have been good.
CDE – Then CDE stalled at the 50sma and I posted this recently. It got boring. Holding this stock is boring during that bullish formation, but in a bull market, it can be worth holding…
CDE – CDE Popped 9% through the 50sma Thursday. Holding CDE was great on the first few days of June, then it was 5 days of boredom, but holding on above the 10sma paid off and could keep getting better. Eventually, your stop can be raised up under that 50sma.
VGZ – VGZ had an Excellent massive Base, so VGZ was a Buy here. I posted these 2 charts.
VGZ – Buy that trend line break ( this was midday on May 31). The wedges breaking out are playing out well…BUY THEM 🙂
VGZ – After an excellent 2-3 day pop, VGX consolidated for several boring days, but reversed on the 10sma. I posted this and…
VGZ – On June 11 I posted this Bull flag as a BUY or add to your first position.
VGZ Thursday: Wow, THAT PAID OFF. It looks great and was up 15% Thursday, this could finish forming that cup soon. So these may get boring during Bull Flags or consolidations, but patience can pay off in a Bull Market.
So my point is that we are getting Buy set ups, they break out, they may get boring during consolidations or dips (DCL), but holding on for the Bull Run, much like 2016, seems to be the best way to play it lately. As always , there is individual risk with each Miner, Build a small basket and use stops.
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OTHER SET UPS: YESTERDAY I TALKED ABOUT BTG WITH THE BELOW CHART. I SAID…
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BTG JUNE 12 – This doesn’t look like it is ready for a dip to the dcl like GDX. It looks like GDXJ, coming out of the lows at the end of May. So it may perform differently…
BTG THURSDAY – One day later, it is still boring, but it bounced off of the 50sma & 200sma & is slowly progressing. This may be continue higher.
AGI – On May 14 I pointed out a strong reversal at the 50% mark, after a very strong run from December to March. This was also ON THE 200SMA AS SUPPORT…
AGI – look at this pretty Cup & Handle that it has since formed . AGI Perfectly held the 200sma and has moved higher. This is a Bullish Miner. This chart looks similar to KL.
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DRD – DRD has moved straight up out of the lows, so this is a great example of Not selling all of your positions and trying to get back in later. After seeing this Huge move, now look at this…
DRD – That Huge move is really nothing compared to the potential, but now it seems to extended to buy. These African Gold Miners ran STRONG in 2016. DRD, SBGL, and HMY stand out in my mind…
HMY – So this is HMY making its move now. It bounced off of the 50 and 200 sma too. Bullish support, good volume, I like this as a BUY too, because…
HMY -This massive base makes the potential outstanding if this gets running, just like DRD.
I have already pointed out SBGL many times, using charts like this 🙂
The WEDGES breaking out have been a Great opportunity. And now the Bull Flag.
So I posted this odd High Volume Break from a wedge too. Not as a Buy, but on the watch list…
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AAU– With some follow through and pushing on the 50sma, this could be a buy (Another Bull wedge).
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SA – SA is a buy right now as a base that capitulated. Often these will break above resistance( 200sma) and race up to the point that the Capitulation started. It broke the 50sma & is pinched between the 50 & 200 sma. It MIGHT drop to the 50sma one more time, I would add there too.
SSRM – Another bullish descending wedge that broke out, support & reversal on the 2 moving averages, and moving higher. These Bull Flags on the moving averages are a buy if you see them. Unfortunately, this may be too extended to enter here, but the point is that these are Bullishly breaking out.
NG – This is not a buy, since it is extended too, but it shows another Junior Bottoming in LATE MAY ( GDXJ ) and playing catch up very rapidly. Juniors have been making great gains in recent days.
