Friday February 7th
SPX – Day 4 saw new highs for the SPX. An ICL is due ( We’ll discuss that in the weekend report), but if we get a blow off top type of move, it can be delayed. I will discuss ‘earnings’ at the end of this report.
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NASDAQ – The NASDAQ actually bottomed first, so it has a day 7 high. Notice the orderly manner in which the markets dropped. Again, the dip had nothing to do with the Coronavirus as explained by many news sources. With that drop, it was 34 dead, almost 2,000 infected. Now a weak later it is rising drastically with over 30,000 and 600 dead, yet the markets continue higher.
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I am simply sticking with my GOLD & SILVER CHARTS FROM YESTERDAY HERE ( Both were higher yesterday). SO FROM YESTERDAYS REPORT, CHOPPY YET BULLISH…
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GOLD – Another view that would be bullish for the choppiness is the formation of a pennant, but we’ll just have to wait and see how this plays out. The move out of the ICL was choppy for over 4 weeks! 28 days sideways , and then a strong rally unfolded.
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SILVER – Silver is choppy, but closed slightly higher Thursday. It looks to have put in a dcl last week.
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GDX Thursday – We had a dip to day 14 that did NOT break the dcl low, so it may be a 1/2 cycle low. A 1/2 cycle low is NOT precisely half way through a daily cycle, it is just a dip that comes roughly midway and then it rises out of that dip.
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GDX – So we could see this type of action with a late daily cycle break out similar to the last one, or…
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GDX – We may remain choppy and form a triangle, which we also have been seeing a lot of. These are difficult for traders, but long term investors just ride these sideways moves out and as you can see- GDX has been bullish for the long term investors, well above the 200sma. 🙂
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HL released solid earnings and broke out yesterday. I mentioned it in the live area Pre-Market. It closed up 11%. You may remember that this was a buy in October as it crawled along under that 200sma under $2, so if you are a longer term buy & hold investor, you have enjoyed this Miner and with that report it looks like it is on its way to $4 ( 100% since October). It also looks like it can put in a solid bull run performance with that report. Let me show you the long term chart that I used in November.
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HL NOV 12– I was pointing out that this can run back to that $7 area as a lagger. As seen on the chart above, it ran straight to almost $3.50 and pulled back, so it is still a longer term buy & hold, now with earnings behind it. I own it.
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GFI – Take a look at GFI, it reversed on the 50sma and is choppy, but it is holding up near the highs. The sector is obviously bullish, just choppy like all bull markets are.
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NG – NovaGold & several other individual Miners are choppy , but they are still up near the highs too. You can see that the choppiness is not something to get overly concerned about. Even a drop to the 50 sma would have been absolutely fine, since NG is up over 100% in less than a year.
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– The General Markets have a dcl in place, and you can ride that long ( Even in TQQQ, UPRO, etc) with a stop. I usually raise my stop under the 13 sma after a week of two if the incline is steep enough.
– Oil seems to have bottomed after a deep sell off. Many Energy Stocks are at the lows and may be low risk entries with a stop.
-I hope that I can continue to impress upon my readers that the Precious Metals Sector remains bullish, with many Miners ( and even GDX & GDXJ) hanging up near the highs. This has been Bull Market action and we need to keep focused on the bigger picture when things get choppy. I try to give the ‘Big Picture View’ during the weekend reports, and will do so this weekend too.
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I wanted to briefly discuss ‘earnings’ in the General Markets below. Enjoy your Friday trading!
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~ALEX
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I Don’t always focus on the ‘earnings’ reports in the General Markets, but because of where we are cycle-wise in the general Markets ( getting late), I thought that it would be helpful to see whether we may get that dip into the ICL soon? Or will we possibly just continue to melt upward? Right now with earnings, we do have a mixed bag. Let me show you what I am seeing…
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PTON – Peleton was a nice set up, but I mentioned that they do have earnings coming out. PTON gapped below the 50sma and it looks in danger of breaking the uptrend & really selling off. Today we’ll see if it has follow through selling.
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SNAP did crash Wednesday, but it bounced Thursday, so I am watching this one too. I would expect it to drop to that 200sma.
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TWLO – posted earnings and dropped too, cutting through the 200sma.
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TWTR – Gapping up 15% over the 200sma after earnings release, Twitter is a massive Island Bottom. These gaps usually do not even come close to filling, they often run away higher, so this is bullish.
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UBER – Uber released earnings last night and was up $2 after hrs. , so this looks like it will continue to be a Bullish recovery too.
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ZNGA – Afer selling off sharply with the General market sell off, ZNGA had an earnings beat and closed up over 13%. It regained all of the market losses over the past 3 weeks.
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PINS – Pinterest was mentioned as a buy in a recent report, but I did mention that it was scheduled for Thursday earnings. After the Nov gap down, it looked too risky really. Well, I checked and it was up $4 after earnings last night, so it would open where I put the ‘X’. That is ANOTHER ISLAND BOTTON if it opens higher & doesn’t close the gap.
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TTWO had a good day Thursday, reversing off of the 200sma, but after the earnings for TWLO it was down big after hrs. If that doesn’t change, it is scheduled to open where I placed the ‘X’. That is bearish gap below the 200sma.
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Interesting...
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SPOT – Spotify dropped on earnings Wednesday, but it actually recovered on Thursday. I find this interesting, let me tell you why…
