Bye Bye 2019 – BUY BUY 2020
This is Dec 31st, the final trading day of 2019. As mentioned in the weekend Big Picture Report, many Charts are setting up to make 2020 look like it will be a great year for trading / investing / Making Money. Lets take a look at the charts and see what the current set ups look like going into what should be a lighter volume day of holiday trading ( Although I think you may remember what happened when I said that for last Tuesdays 1/2 day trading before the Christmas holiday).
SPX – This has formed a swing high on day 18. It has not broken the 8 ema or 10 sma, and if you look at the last run, I point out day 22 and you can see that the run just continued higher for weeks. So this CAN turn higher here & just keep running, but let me point out something else that I noticed.
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NASDAQ – The NASDAQ looks the same as the SPX, but…
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IBB – The IBB or XBI broke the uptrend, the 8 ema, and the volume selling is increasing. Also notice the MACD broke down and the Stockhastics finally dropped back below 80. THIS could be a sign that the markets are ready to begin a dip lower. It is something to take note of and keep an eye on.
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WTIC – If Oil doesn’t break out soon, it looks like it will fall back to the lower channel line ( which is where the 50 sma is anyway). I am seeing a bearish rising wedge, but the fact that it is called ‘bearish’ can simply be short term…
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WTIC – It can simply drop something like this and offer a nice buying opportunity in Energy. Maybe just a normal drop to the 50sma. If that happens…
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XOP – We can look for buying opportunities in the Energy ETFS or individual stocks too.
Sidenote: SOME Oil or Energy stocks could resist the drop and continue higher, something like we saw with some Silver stocks rising while Silver was consolidating.
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USD – When I zoom into the USD, it looks to be taking on a rounding top. That is from a series of lower highs & lower lows. Monday was a reversal candle, so it may or may not bounce here, but it looks weak.
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GOLD – I have been saying that I think Gold builds a nice cup. This looks like a bull flag as Gold tries to finish building a cup formation.
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SILVER – Silver also looks like a Bull Flag.
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GDX – I drew this at 9:55 a.m. and posted it in the live are to show that this may just be forming a bull flag, and then…
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GDX – It actually closed higher, so this can just run to September highs with just a small pause here. The Gold & Silver ‘bull flags’ just discussed can do the same. In a Bull Run, you often get ‘Surprises to the upside’ when expecting a dip.
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GDXJ – Would I be exaggerating or dreaming if I said that GDX or GDXJ could form a cup and then after a very small handle just keep running like this? This would leave many behind that are waiting for a dip, a dcl, or a gap fill, and…
PAAS – Yes, as seen here on PAAS, it is possible that GDX & GDXJ could also do this after forming their cup.
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GOLD Popped $6 as I was collecting charts and writing this report on Monday night. It would be nice to see this surprise to the upside stay with us through the final trading day of the year. Enjoy your Tuesday trading, and your Wednesday off. If you are going out on New Years Eve, be safe and we’ll see you again in 2020!
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~ALEX
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CUP FORMATION: I mentioned this in the weekend report. Using this chart I showed how in the past I have seen the right side of a cup form in a similar manner as the Left side dropped.
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GDX MONTHLY – In the future, we could rally for 7 up months of 9. I cannot say if it is time for that yet, but I have seen the right side of a cup form in a similar fashion that it dropped on the left side. This was 7 of 9 months down. Can you imagine 7 of 9 month up?
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CUP FORMATION EXAMPLE – I saw this on an intraday chart and wanted to share it, because it is an example of what I was saying. So this is just an example of the sharp sell off, base, and strong rally.
1. The drop on the left was a rather relentless sharp sell off.
2. It then can form a consolidation or base, and
3. Then the strong rally higher forming that cup can be as relentless as the drop was. This was BE yesterday .
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As I write, This is GOLD Monday Night Eastern Time– Gold could run straight up to recent highs with hardly a pause after that nice long choppy consolidation that bored us to tears. THIS HAS NOW TAKEN OUT ALL OF OCTOBERS HIGHS.
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A TRADE
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BE – This was pointed out as a buy under $3. 00 in October as a wedge break out…
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BE – Then this was a Buy too at $4.30 as it ran swiftly higher.
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BE – So it ran from under $3 to $7 and then began to consolidate, but with a run like that, it shows strong potential. Well…
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BE – I bought this Monday near $6.90 as a trade and posted it in the live trading area. This looks like a flat topped wedge ready to break out. It can run swiftly. Another bullish view of ‘BE’ is…
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BE – An inverse H&S about to break out. It closed with 5.7 Million at $7.20 and a short term target is $8.20 conservative, but it has a target of $9 or higher too. If it is ready to go, it could be a nice quick scalp trade.
VNNHF – I have BELO SUN MINING on my watch list, I do NOT own it. It Gapped open last August and doubled quickly from 25 cents to 50+cents. It then sold down and has recently closed that gap & reversed at the 200sma. On Monday I saw volume starting to come in and it was breaking higher. It actually closed at 37 cents and could be ready to benefit from the rise in Golds price.
YRD – This was YRD as a buy at $5 on December 18th.
YRD – It closed above the 34 sma Monday for the first time in months, and is now at $5.36. Volume closed higher than shown, up near 300,000 and I think it wants to run higher. It can be bought with a stop under Mondays lows.
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EXK – It is getting harder to find lower risk entries near support in the Mining sector, but EXK & USAS are still a bit sluggish. Both are fairly close to that 50sma and I would expect it to play catch up.
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NEM – NEM from the weekend report . I was just reminding readers that it almost looked ready to break out and this could be a nice steady run higher over time. IT DID BREAK TO NEW HIGHS MONDAY. It would be a bit less risky than the juniors and may just slowly continue higher.
