Friday October 11
As the last trading day of the week, I just want to put out a report that is short & to the point.
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SPX – The SPX and NASDAQ rallied and then sold off into the close. Buyers are having a hard time taking full control, but they did closed above the 10 & 50 sma. This is day 5 and I would say that stops can be raised to the recent day 3 low and we’ll watch for a break of the overhead trend line. Hopefully this wont be as choppy as the last DCL.
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WTIC – Oil finally broke higher with a little conviction and barely closed above the 10 sma, so this should be day 5. The XOP & OIH sat at the lows, XLE moved up to the 10sma. Energy stocks still looked weak and look to be forming bases.
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USD – The USD dropped Thursday, but that did not help Gold. Gold dropped and Miners dropped to their 10sma and then reversed higher. Precious Metals remain mixed…
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GOLD INTRADAY – Gold was selling off quickly, yet Miners bounced off of their 10 sma as I captured this chart. What was happening on the daily chart?…
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GOLD – Gold was rejected at the downtrend line & lost the 50 sma yesterday…
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SILVER – Silver also reached resistance & dropped, despite the USD dropping…
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GDX – Both GDX & GDXJ dropped to the 10 sma & bounced. They remain under the down trend line & 50 sma. Friday may reveal whether this was a false ‘buy the dip’ or whether Miners are leading Gold higher.
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As the last day of the week, we have the General Markets rallying and then selling into the close. They are gradually moving off of the lows, closed above the 10 sma making a dcl likely, but so far it looks choppy.
Oil had a sign of strength, but many Oil & Energy Stocks did not react as strongly.
The USD dropped and Miners bounced off of their 10 sma, but Gold & Silver hit resistance overhead and dropped with the USD. Overall I would still be expecting a drop into a dcl / ICL, but if these Push higher and break above the down trend lines? That must be respected as bullish. WATCH THE TREND LINES. Since GOLD, SILVER, and the Miners are trading at those downtrend lines, THAT is what I am looking at daily for signs of what this sector wants to do.
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Enjoy your Friday trading, and enjoy your upcoming weekend!
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~ALEX
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So this is mainly what I am focusing on with Precious Metals at this time, “Will resistance hold?” …
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New Bullishness or temporary? We have seen ‘Temporary Bullishness’ in the METALS SECTOR in the recent past. Honestly this sector has bullish spurts, but has been down trending. That is now turning into possible base-building chop. Steel, Copper, etc have perked up, but eventually rolled over. Well, they seem to be perking up again, so I wanted to point that out for traders. I noticed FCX, HBM, AKS, CLF, etc starting to look Bullish again. So here we have …
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COPPER– That had a nice Pop, but like I said, we did see a similar POP in early September. Copper may be bottoming & has built a small base for 2 months, and…
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HBM – FCX even looks a bit better than HBM, but I’m pointing this out as still being at the recent lows with big MACD Divergence and a breakout is buy-able ( We did see a false break out of the 50 sma in the past, the 200sma held it down).
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So the ‘Metals’ can be monitored for progress going forward.
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I also just wanted to show the potential if these 2 Shippers that I mentioned recently. THEY ARE TURNING INTO LONGER TERM BUY & HOLD, Though they are a bit wavy. They have actually been trending higher recently, so are they forming massive bases? We’ll see. Let’s take a look…
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SBLK WEEKLY – Now trading at $11.20, SBLK has been slowly climbing since April of this year, when it was a $6 stock. This could be a long term base. It has almost doubled this year. It is above the 50 & 200 week ma.
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SALT WEEKLY – This is a $7 stock that is now above both the 50 & 200week ma. This could be a massive base and price could make nice gains if this sector remains bullish. It has also been rising since March 2019 where it was a $3.50 stock. It has already doubled this year & look at that potential.
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SHIP WEEKLY – SHIP actually finds itself pressing against the weekly 50 ma. It is higher risk, since it is trading under $1, but it also could be a larger long term base.
