Friday August 9th – Ridem’
SPX – The General Markets were a BUY with that reversal. That drop was such a steep 4-5 day drop that it could become a V-Bottom on the bounce ( I say that because I would expect that many went short thinking it would waterfall through the 200sma, so this could become a short cover move at first). I would raise stops along the way.
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UUP – The USD was green with strong volume in the UUP (Miners were green too). The sideways action may be allowing Precious Metals to finish their move. I’ll explain that next…
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MRO – No Big change with OIL, but Oil / Energy stocks like MRO, VLO, WTI, DNR, and others look like they are setting up for at least a good bounce. If MRO gets to the 200sma, that is a big move.
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WTI -This looks like a double bottom low with solid divergence, so it could be bought with a stop. It has moved higher rapidly in the past.
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On To Precious Metals
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GOLD – Gold still looks like it wants to run to $1550 to finish this measured move. It could Bull Flag here if it doesn’t just continue higher now.
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SILVER – Silver dropped, but many Silver stocks were green.
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GDX – Only 1/2 hr into trading GDX had 10 Million in Volume. I noticed that GDX dropped down, tried to fill a gap, and then went green WITH GOLD & SILVER BOTH DOWN, and THE USD UP. That is all Bullish action, so I posted this on that reversal at 10 a.m.
GDX was only up 2 cents, but the action was bullish.
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GDXJ – I posted this in the chat area later in the day and mentioned that this run is being pretty reliable around the 10 & 20 sma. It did break those lines one time (Fed drop & recovery) and you could jump right back in on that reversal and try to catch some more upside.
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GDXJ- Will Thursdays action just chop like we saw in June? Maybe, but that reversal could also lead to another run higher, since the bull keeps surprising to the upside. I do think we get a little more upside, and that is why I mentioned again in yesterdays report, ‘You don’t want to sell everything and lose position if the surprises are upside in a Bull run’.
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LET’S DISCUSS THE RUN :
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GDX – GDX is at the top of a channel, but price can climb along an upper channel line. The RSI is weakening, so I would expect a dip down soon. So…
GDX to $31 and then a drop? We’ll see.
GDXJ – If GDXJ was only going to climb a bit higher, it would match what we saw with the ‘Continuation Gap’. See the chart. Did you notice that GDXJ actually looks a better than GDX when you look at the RSI & MACD. GDXJ still looks rather bullish.
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GDXJ VS GDX – GDXJ has been leading for weeks and is stronger.
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GDX VS GOLD – And now we have Miners leading Gold here as it breaks out with Thursdays out performance. If GDX hits $31, this could just double top.
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It is Friday and another week of trading has come & gone. Gold, Silver, and the Miners were higher this week despite the USD holding up there too. That’s a nice change of character and the bullish buying has kept the run going. I will discuss a couple of things below, but it is the last trading day of the week, so…
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Enjoy your Friday Trading & your weekend!
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~ALEX
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CDE – CDE released earnings and dropped to the 10sma & then reversed higher. THAT IS BULLISH, so I posted this in the live chat 1/2 hr into trading and mentioned that I think this goes higher.
CDE – Midday it was now at new recent highs, and it actually closed at $5.59, another 10 cents higher…
CDE Big Picture- I grabbed this bigger picture chart to show that with those earnings and the bullish push higher, CDE may now be set up to break out here. The volume swells tell me that institutional buying is likely taking place.
EXK – EXK also released earnings ( and it didn’t sound very good). It dropped to support & reversed higher too, so I posted this chart. It closed a bit higher than this, so it might be ready to continue higher Friday.
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CDE & EXK are examples of a small drop & reversal. CDE is EXCELLENT, EXK may hold up well.
HL & IAG on the other hand are examples of Miners that got dropped after earnings, and they are the reason that some might want to lighten up before earnings release.
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IAG – Though it was a big drop Thursday (13%), it is really just trading at the price that it traded at last week (on that FED DROP).
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NGD – This looked like it might break higher soon, but After Hrs they mentioned a stock offering. So I looked at price after hrs and…
NGD TSX – The offering was for $1.60 Canadian, and that is actually where it traded Thursday. So this might not drop very much from an ‘offering’, and you can watch the 8 ema or 10sma for a price break. That may signal that NGD is ready to run. THEY ALREADY REPORTED EARNINGS ON AUG 1
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A STORY ABOUT USAS:
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USAS – I just wanted to point out USAS. I have 18 charts of USAS from the lows, showing this one as a ‘base buy’.
‘Add on the break out’ above 200sma, and how it was progressing…
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‘Bull Flag Buys’ showed up for another entry / add to position / or start one if you missed it…
Other charts were showing the progress that it has made 🙂
USAS – We have 100% gains from the buy at the lows, and this one still has good potential, so Congrats to all that bought, added, and held on. There are a lot of Miners that are doing very well. HMY has doubled too. DRD, NG, RGLD, EGO, etc etc , this has been a great run!
DRD – Up over 100%. I wanted to also show everyone that all Miners will not follow cycles or GDX / GDXJ. They can make their own path. This had a Big Run, went sideways, then started this 2nd leg higher. This chart does not resemble GDX or GDXJ, so even if I expect a pull back in GDX, holding a small basket of Miners is prudent.
