Friday January 17th
Something to keep in mind: This is Friday, the last trading day of the week, and in the U.S. the markets are closed on Monday.
I am looking at Gold pre-market as seen on this 4 hr chart and it has the look that it wants to break Higher. That will finally put it above that 10sma and that would help to confirm that a dcl is in place. If you trade in the U.S. and Gold is up & running higher Sunday night through Monday night, you will not have a chance to take positions, and you’d have to deal with a possible large gap open on Tuesday that may not close. That said, you’ll need to be ‘as invested as you feel comfortable’ by the close Friday if Gold is above the 10 sma. I will discuss that further later in the report…
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FROM YESTERDAYS REPORT NASDAQ – No change here again, except that the markets Popped and made new highs again on day 30. Yesterday I wrote: On this chart you can see that we could still go higher if we simply repeat that last daily cycle run. See the chart & cycle counts. Use a stop at the 13 sma and you’ll still be in the trade
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WTIC – Oil has tried to recover and is due for a dcl, so this may be a swing low forming in Oil. It is back above the trend line, but has not recovered the 50 sma or 10sma, so this does need a little more time. Some Energy stocks were up, others were not. XLE & XOP were red, so we need to see what Oil does Friday before I get too excited about this sector, but this IS good progress.
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GOLD – Gold was rejected at the 10sma, and I want to see this break above the 10sma to confirm a dcl BEFORE THE CLOSE FRIDAY. The markets are closed Monday in the U.S., I am positioned long. $1538.40 breaks the lows, the 10 sma is Gold above $1556.50. Any good news?…
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I am writing this report Friday morning and Gold 4 hr chart looks ready to break higher, as an inverse H&S with the lower indicator strongly turning bullish at this time. FRIDAY may see Gold break higher above the 10sma on a daily chart.
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SILVER – Silver was rejected at the 10sma, so we can look for Silver to close above $18.06.
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GDX – GDX sold off & lost the 10sma on Thursday, but it did start to see some buying into the close. I still think that the lows are in place here, but a stop below the recent lows would be prudent.
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REMEMBER WHAT I SAID ABOUT THE WEEKLY CHART. FRIDAYS CLOSE WILL FINISH THE WKLY CHART, AND I WROTE THIS: GDX WEEKLY- So far, Our current weekly chart looks just like that chart. If we close in this area (or higher is even better) by Friday, we have a great looking weekly chart again. The weekly MACD is about to cross, so this is looking like a buy to me.
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I would like to see Gold break higher today, and the set up this morning is Bullish! We are due for a dcl and we do have an unconfirmed swing low in place for Gold . That GDX WEEKLY chart above looks great if it closes here or higher too. In the past we have seen a nice slow melt up in the precious metals sector heading into the weekend. Many are usually nervous about buying then, especially heading into a long 3 day weekend in the US, but the set up looks very promising and it could be the start of the next leg higher. I am positioned long and I do have leverage, but I won’t recommend that risk, that is your decision to make for yourself .
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Enjoy Fridays trading & Enjoy your weekend ( Long weekend in the U.S.).
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~ALEX
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HMY – I’ve been looking at individual charts and they do look good. This was in yesterdays report, and the chart after it is during trading hrs yesterday.
HMY – HMY is a Cup & Handle and it could be bought with a stop under Thursdays lows.
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HMY looks ready to break higher from a Bullish Descending Wedge
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LGDTF – In December I mentioned that I bought this as a long term Buy & Hold and said that I recommended it here or if it breaks out.
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LGDTF – I was asked if I am selling it because the volume is getting light. I am not. It may pull back , but this also could be a running correction that eventually bursts higher. It is now up 40% from the 65 cent entry, and that was with Gold selling off. Due to that performance…If it pulls back I’ll simply add.
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Yesterday I wrote that I felt GPL was a buy.
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GPL was up another 11% on great volume and really does look to be in recovery mode. They released earnings recently and now GPL has become more bullish since the November lows. It should play catch up to the rest of the Silver Miners.
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From Yesterday GORO – GORO reversed on the 50 sma as support and looks ready to go too. $5 to $7 is a decent trade, but eventually this should run even higher. Actually if you bought GORO at the last ICL, it is up 100%.
So I will discuss more set ups in the Miners sector if or when Gold gets back above the 10sma, but many look ready to buy.
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LASR – (EMAIL REQUEST) This was actually recommended here in late September at the 50 sma ( $15.50 to $16). It then ran higher and dropped again, becoming a buy again. Since then it ran higher & this time put in a high consolidation. One very patient reader bought it then and never sold it and asked what I think now?
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LASR – Your patience has paid off, this is a bullish break out and it should run again. This is also a new buy for any that want to enter. It could run to $27. That would be a Great 4 month trade from $15 to maybe $27.
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NTNX – This was a buy recently and it has slowly been making progress after filling that gap & back testing the 50sma. It is still a buy here as it is in recovery mode for the last 5 months ( $17.50 to $37 so far!).
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WIFI – WIFI also consolidated after a strong pop in November. Yesterdays break out is a buy and this should run higher. It has the potential to run from this $12.50 area to the $20’s actually.
I have had many trade ideas over the weeks, hopefully you have kept a watch list of your favorites so that you can track them. Some are still buy opportunities, since they are still near support areas.
FOR EXAMPLE: UBER has been a buy here, and I still think it can be bought.
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UBER was a buy here too at $29.75
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UBER has been running slowly higher, but has a small bull flag to the 10sma. This is where I would add to my current position for the next leg up, and I’d simply put a stop on my new addition ( or the whole position) under the 10sma.
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CREE was a buy here this week ( on January 14 ) as it broke out at $51. It should run into the $60’s…
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CREE – It is starting to go higher, but is still only at $52.21, so it is ok to add or watch for a tag of the 10sma in the future to add, etc.
