April 9th – The Last Trading Day Of The Week
Just a reminder that Today is the last trading day of the week, the markets are closed on Friday.
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SPX – It is only day 12, and I feel that short term there is still a bit more upside before this stalls at resistance again. I have expected a run to the 50sma to start, and then I will take it step by step from there. This can run straight to it, or chop like it has been.
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I have pointed out how the VIX was trapped under the 10sma, but it is now approaching support as the SPX approaches resistance.
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WTIC – Oil is expected to make a run higher, and after the inventory report there was no reaction. Suddenly, later in the day, OIL POPPED HIGHER…
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Oil popped later in the day and we got what looks like a perfect set up from that. Let me explain…
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USO & UCO are a perfect buy set up right now. Both reversed right at the 10sma, so a stop is under the 10sma.
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UCO was up 10% with that reversal, since UCO is a leveraged play on Oil. This could easily go from $2 to $4 or $6.
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I have been pointing out several Energy Stocks and many that have been moving higher by 10-15% with Oil stalling ( PUMP, APA, MRO, WTI, BE, OKE, BTE, ERF, etc etc). They may catch even more attention with Oil set up to move higher. ERX is another option, it was up 14% Wednesday.
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GDX has been stalling at the 50sma, and this was always a possibility. We have seen price crawl along resistance in the past, and with GOLD at the highs, we would hope that this PUSHES THROUGH before the end of this daily cycle. I have drawn out a bullish possibility ( just a guess on the count, not an exact prediction. Also day 9 should be 8).
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So Miners have been bullish and we have discussed some set ups. They may set up even better if GDX crawls under that 50sma a bit more.
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SO NEXT I WILL DISCUSS STOCK PICKS: Some are from recent reports and are making progress. Remember that today is the last day before a 3 day weekend. I will still hold some positions over the long weekend with the current set up. I have been holding some positions since last week.
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SHOP – Shop ran from $300 to $475, but then it had a deeper pull back as a higher low. It now looks ready to run again
ON APRIL 6 , TWTR was a buy here under $25, breaking the 10sma with a higher low. Now…
Now TWTR hit $28.45 Wednesday and pulled back slightly. It looks ready to try to break that downtrend line. If this is going to head back to the former highs, it can be bought here too or add to position.
I have been discussing AMD, MU, CREE, TSEM, AMAT , SOXL as semiconductor buys. They all had good days, but AMD is holding above the 50sma now. You could add here with a stop under the 50sma on your new addition.
I think that CURO is a buy as it broke the 20sma, and it can still be bought here. It has a double bottom low with strong MACD & RSI Divergence. Wednesdays small pop was up 10% , even after selling down into the end of the day.
GPRO is breaking out as a buy above the 10 or 13 sma.
SAIL is just starting to push higher out of a double bottom low too. It ran from roughly $12 to $18 and has a $19 price target now , but may tag the 50sma at $20.75. THAT is a nice gain $15 to $20+.
ZM has been holding up at the 50sma, despite news on security issues and is finally oversold. It is a low risk entry where a stop can be placed a bit under the 50sma.
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AS MENTIONED ABOVE: I have been pointing out several Energy Stocks and many that have been moving higher by 10-15% with Oil stalling ( PUMP, APA, MRO, WTI, BE, OKE, BTE, ERF, etc etc). They may catch even more attention with Oil set up to move higher. ERX is another option.
I mentioned that I bought APA and even added to my position. So far it is rising nicely, and the upside still looks very good, even on just a bounce. These small daily moves are 15% and it can add up fast. It can be easier to see if we zoom in…
APA – This was $4.00 only 5 days ago, now it is near $8. What if this runs to the 50sma & that gap? That is $16-$20. HIGH RISK/HIGH REWARD.
I also own MRO, and really it hasn’t started to run the way I expected, but it has only been a few days. It is up from $3 to $4, but it also has good upside potential and may start running too, with OILs reversal.
CVI regained the 20sma, and that is what I have been looking for. This is a base along the lows with MACD & RSI divergence.
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I sold my CLB (no real reason, it is doing fine) to buy BE when I noticed that it was holding the 13 sma nicely. It popped into the close after OIL s midday surge, I expect it to continue higher and it can be bought here, especially if it dips on Thursday.
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FROM YESTERDAY OKE – I own OKE and it was up nicely but also close only up roughly 4%. I like the set up and might add if I see a drop to the 20sma. Note: OKE closed up 8% Wednesday and looks like it can keep going.
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RECENTLY METALS STOCKS WERE MENTIONED: Many are doing quite well too.
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HBM, X, CLF, FCX, STLD, etc., are following through nicely. This is HBM. These Metals stocks might just get to the 50sma, crawl, and then break through higher, but there are laggers too…
AA is lagging compared to some of the others mentioned but the set up is Bullish ( Aluminum stock). ZEUS is also a lagger at the lows, but looks like a buy with a stop ( Steel stock). So these are still bullish trade ideas.
Matador resources (MTDR) looks like it is going sideways, but these are really big moves actually. This was up 14% Wednesday, but it looks like it is breaking out & ready to run from $3 to $6.
GHSI is a Coronavirus potential vaccine drug company. I owned this but I actually got impatient with the sideways chop. Now it looks ready to break out and run. The RSI held the 50% area, the MACD looks set to cross, and these can move swiftly when they run, so it is risky but bullish.
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FROM YESTERDAYS REPORT: I traded TLRY and the gains were excellent, it ran from roughly $2.25 to $10. This is starting to show reliability at the 20sma, so it may be setting up to reverse and run again.
TLRY GAPPED OPEN: I mentioned in the live area that TLRY seemed to be acting correctly, so using this intraday chart, I bought my position back when it POPPED open and dropped to fill the gap. It was above $6.50…
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TLRY actually ran to $7.55, but then dropped back to $7. I still like it and think that it can make another run similar to the first one.
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It is the last day of trading, and some may want to lock in gains by the end of the day. I will see how things look by then, but so far I will probably hold most of what I have. I have been holding some positions since last week anyway.
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– The General Markets look fine and may just pause, chop around, and stall at the 50sma for a bit, while individual stocks do their own thing. It is only day 12 of possibly 30-40 days. A trend line break seems to indicate that an ICL is in place, so we should have more upside.
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– I like the Oil / Energy set up here coming out of the lows, and I will probably hold those over the weekend. Oil is only day 7.
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– GDX is hitting resistance, but individual Miners still have a bullish look to them. GDX may crawl under that 50sma and then break out, since GOLD is up near the highs, but we’ll just have to wait and see how all of this plays out.
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This weeks Market Rally has taken place with the coronavirus at its worst globally. The OIL market inventories are very high, but Oil bottomed and POPPED today. That just shows that contrarian thinking is still alive and well. Markets can climb a wall of worry, and there still seems to be ‘time’ left in the daily cycles to allow that to continue. I have discussed that in the weekend reports, showing multi week rallies taking place out of a crash, even when a bear market is starting.
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Enjoy your Thursday trading & your long weekend!
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