Friday January 10th
Today is Friday, the last trading day of the week, so let’s just do a quick review and look at a couple of stock trades.
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QQQ #1 of 3 – What can I say? Normally these can be topping candles, but what is happening here is that the market gaps open, sells down during the day and fills a gap, and then buyers buy it back into the close. So…
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QQQ #2 of 3– This is due for a dip, since we are on day 25 from the recent dcl, but so far riding this with a stop under that 13 sma has kept on in the trade. It is getting late in the daily cycle but look at the last run & Dcl. It was a 3 day dip, so at this point the markets are really strong. Melt up?…
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QQQ #3 of 3 – So far the dips, including the dcl are minimal, so yes, we should consider that a possible melt up could take place. I honestly was expecting a drop to the 50 sma as a dcl, but we’ll just have to see if sellers drop it and buyers allow it to get there.
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WTIC – I had mentioned that Oil could reach the lower channel line & 50 sma, but I expected it to take several days. We got a very strong drop and we are there already in 2 days. Now we just have to see if this small reversal candle is going to become a dcl on support or will it break down further.
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GOLD – Gold dropped and put in a reversal at the 10 sma. That doesn’t mean that the selling has finished, but look at that first consolidation in June (blue arrow). It also stopped at the 10sma & bounced around sideways. Now we have to wait and see if this does an a-b-c type drop to the 50 sma? Or does it chop sideways and build a handle here.
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SILVER – Silver does look like it could drop further.
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GDX #1 – I just wanted to focus on 1 of a few bullish points on the GDX chart. Though we had a strong drop, I do see the 10, 20, 34, and 50 sma all tightly wound together and curled up already. That is bullish alignment & often supports price on a drop. Notice that it is a lot tighter than what we saw in the May-Sept run. That is bullish too.
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GDX #2 – If GDX bounces & chops around, you still could see that handle continue to grow, but as of Thursday price sits at the 20 sma. We currently see a 38% to almost 50% drop, but this CAN drop to the 50 sma and still be ok.
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GDX #3 – If I were counting days from the lows, this would be a very late cycle, so there is hope that the selling is done or very close to being done. Maybe a tag of the 50sma?
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GDX #4 – GDX also reached what could be a support area back test.
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GDXJ – GDXJ held up at the 20 sma so far, but I do see a gap that could fill on a dip to $39.50. It is possible but not necessary.
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GDX PATTERN – I didn’t like this, but figured I’d show it anyway. Do you all remember that really choppy frustrating move off of the lows in August 2018 ICL? It was similar to this one actually. IF IT FOLLOWED THIS PATTERN, we would actually bounce off of the 50 sma and then do a shake out below it. I DOUBT THIS, because THIS 2018 move off of the lows lacked conviction & Real Buyers. Why? It was the Bear Market lows & many did not believe in it. We should see buyers soon, since we are now in a Bull run. I just wanted to show this drop back to the 50sma at that low as a possibility now.
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In the weekend report, I am going to actually cover 2 more areas that I see affecting Gold short term, but I will tell you in advance- They are longer term Bullish too. For now we’ll see what Friday throws at us . The General Markets and stocks there have fond upside follow through.
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I’ll review a few trade ideas below. Enjoy your Friday trading!
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~ALEX
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PSNL – I posted this as a buy at the end of December. The RSI broke 50% for the first time in months and things look good. Well…
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PSNL – It slowly back tested that 50sma and then popped again. Yesterday it pulled back again. This may be frustrating, but it is still bullish and offering another buy opportunity as it leaves this base ( With a stop under the 50 sma). Choppy now, but it may just start moving higher over time up its 10 sma. This reminds me of…
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TWTR – PSNL has a similar way of moving out of the lows as what I have been pointing out in TWTR ( I own TWTR). Very Slow but fairly steady progress.
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VSLR – This has been in the recent reports as a buy off of the 50 sma and now it broke out yesterday. I own this too, and expect it to run to recent highs. Notice how choppy this one moves ( I hate that, but you have to expect it).
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SOGO – I pointed out in a December report that many of the beaten down Chinese companies are recovering & looking Bullish. SOGO broke down & tagged the 50sma. Now it is at the 50sma again, so this may or may not be ready to break out above the 50sma yet. Put this on your list if you’d like. It can be bought if it breaks that 50 sma , then place a stop under it. I had Chinese companies SOHU, BIDU, YY, YRD, VIPS, and several more. They all look bullish.
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YRD – When I saw YRD under the 50sma, it was a buy & a break would be too. It then sold off & lost the 50 sma, but recovered. YRD was up 10 % at 10 a.m., so I captured this and posted it in our live trading chat area…
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YRD – It continued higher up 18%, and then sold off a bit . It closed up 14% and the upside potential is big if this gets running. These can move fast.
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CGA – Another Chinese company looks to be bottoming. This looks great, but please notice how hard this has been to ride too. Bouncing around between $2.50 to $3.50 is not easy to take, but once it gets running it could do well. It is a buy here, or Maybe this one goes on a watch list and see if it starts trending higher.
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BYND – I pointed this out 2 days ago as a buy upon breaking out. It stalled Wednesday and then moved up 10 % Thursday. This stock tripled in 2 months as an IPO.
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CRWD – CRWD broke out, back tested, and is still ok.
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DBX – Put this on a watch list. It is a buy if it can break above this 50sma. It is squeezing between the 10 & 50 sma right now, so I think that this could break up or down as soon as today. THIS HAS BROKEN THE 50 SMA & FAILED in November, so we do use a stop.
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RRC – JT mentioned this one and I really like that back test & reversal candle yesterday. Know that this is a NATGAS & OIL PROPERTIES company, so there could be risk if Energy struggles, but the set up is Bullish & can be bought with a tight stop at Thursdays lows / support.
RRC -A close up shows that with the recent Oil /Natgas selling, this just chopped along holding the recent rally highs until yesterdays back test. I is a good set up, despite any recent weakness in Oil or Gas.
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