May 21 – JOBS 40

Todays JOBS REPORT is expected to show that almost 40 Million Jobs were lost with the Covid-Shutdown. So far the General Markets have shrugged off any bad news, and the Precious Metals sector has been on fire, so let’s take a look at the charts.

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SOXL – The General Markets are early in their 2nd daily cycle ( Day 4) , so even if a negative Jobs Report  dips the markets today, it may not last very long. I recommended TQQQ, SOXL, and UPRO as leveraged vehicles at the lows, so far they are doing well.  The Semiconductors often lead, so I want to look at a few Semi’s & Tech stocks here.

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CREE – This is a Semi that already burst higher, but I wanted to just point it out to show that this one QUICKLY made it back to the January highs already.  Others could follow, so now let’s look at a few others…

 

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JBL popped recently too. This one I would buy if it dropped to fill the gap near that 20sma.  A bad jobs report MIGHT cause that dip.

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AMD  – I pointed out AMD yesterday and it looks to be trying to break higher as a buy (Cup & Handle type formation).

 

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INTC – You may recall that I had INTC Mislabeled  in yesterdays report , but it was a buy…

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INTC is breaking out and should run to the February highs minimum.

 

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TSEM – I also like Tower Semiconductor as a buy right here, it has been steadily trending higher. IF the jobs report drops this to the lower line and 20 sma, a reversal in that area is even a better entry.

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OTHER GENERAL MARKET STOCKS

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 I recommended DOCU, WORK, and CRWD  in the past as formerly bullish companies that could recover well after the sell off recovered.  Here I just want to point out something specific about this recovery.

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DOCU is extended and NOT a buy right here, but notice the GREEN ARROW.  We had

1. a break of the consolidation ,

2. a BACK TEST AS A BUY , and a rally….

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CRWD  also broke out , BACK TESTED AS A BUY, and then started to rally ( This could be bought on a dip). Next …

 

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WORK  – So now notice that WORK is still in the back test / buy area. It broke out, chopped sideways and is back testing now. It may be ready to head higher too.

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BYD – This was in yesterdays report and it pushed up another 6%.  I still like it, it is a solid bullish consolidation pattern.  I mentioned that staying quarantine might help a gaming stock ( Thinking that they did on-line gambling/ gaming) , but I was corrected :  They do casinos. So maybe the re-opening up of Vegas slated for June 1 is perking up the stock?  Regardless, the volume is coming in and price is rising as it breaks from a bullish flat top wedge.

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PZZA – Ordering Pizza delivery while at home has been paying off for Papa Johns.  Buy the dips to the 13 sma has been working.

 

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YESTERDAYS REPORT:  TWTR  Dropped below the red uptrend line, tagged the 50sma, and recovered in 2 days. This is a buy & could prompt a run from $28 to $36+

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TWTR popped 8% and should continue higher. It may just run straight to the $40 area.

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VFF  – I recommended this set up a few days ago and said that I bought it.  A few readers followed me and I was asked if I sold.  I didn’t, I just want to see if this can run strongly (This sector often does).

 

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SIC – What a nice base  ( Interior designs).  I accidentally put this ticker in and saw it up 38%??  This popped TO the 50sm with volume in April, then crawled under it bullishly, and now Popped Through it bullishly with volume. Can I buy a stock up 38% in one day? It isn’t usually a great idea, and earnings come out TODAY-SO –  I want to put it on a watch list and see if it does this (next chart) …

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SIC – Earnings come out this morning. It could take off like a rocket, or it may dip like this. I would consider buying this for a quick trade (or more) if it acts correctly.

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SURF WEEKLY – On My Watch list:  ( This is a clinical-stage immuno-oncology company, focusing on biological pathways critical to the immunosuppressive tumor micro environment and the development of next-generation cancer therapies) . They did SOMETHING right, popping 42%.  They raised nearly 30 Million Dollars in a stock sale , from what I could see when I skimmed the news.  It was on my watch list when it ran from $1 to $4 in Oct-Feb. Then it dropped with the markets. It was a bit too choppy for me to add to the reports.  This base may eventually lead price back to the highs when it was an IPO near $20.  If it starts trending higher, it would then become a buy. It may be good for your watchlist?

 

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MINERS REVIEW

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The first daily cycle didn’t ‘peak’ until day 27.  The dip to the dcl lasted 6 days. Now we are on day 13, and this daily cycle most likely has NOT peaked yet. That makes it a buy the dip, with a stop under the 13 or 20 sma.  With that Thought…

 

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YESTERDAY I DISCUSSED GDX 2016– Marking that JAN low as our March low, you can see where we’d be now (here).  GDX was strong & still moved higher, so with Gold near the highs, I have to expect something similarly bullish.

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So we can discuss Miners, either add on the dip or buy a lagger.

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IVPAF  is in a sideways consolidation and looks ready to play catch up soon. It bounced right off of the 50 sma and broke the down trend line.  That is a buy as a laggard that could play catch up now.

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Another tighter view of IVPAF  – that is a Buy

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YESTERDAY I SAID THAT I LIKE & BOUGHT PLG – I Bought PLG as a real lagger that has great potential. It is trying to get above the 200sma.

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PLG  – It promptly dropped to the trend line and 10 sma. It is still ok, but it lost the 200sma seen in the chart ABOVE. I am still holding it at this point, though it may drop to the 50sma 10 cents lower.

 

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FROM YESTERDAY I WROTE:   SVM – I could actually recommend this as one of the laggers,  but I want to see it recover first.  So how about this…it is a BUY if it regains the 200sma – it almost did by the close.

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SVM  started to recover.  You may recall that 2 days ago AUY was slammed down ( and recovered). SVM was taken down ( And is recovering), so I am hopeful that PLG will recover the 200 sma soon too.

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ASM  – Yesterday my little rocket ship Popped another 12% or so, and then gave it up.  This is USUALLY a topping candle short term.  Read the chart. It could drop to the 200sma, giving up big gains, but I didn’t sell my whole position because…

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ASM  if this bull flags, the lows would already be in. I would LOVE to see a bull flag here, like the one we saw in Gold.

 

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REMINDERS FROM YESTERDAY  

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FROM YESTERDAY :  CDE  exploded with Silver and is still flying. It COULD be bought at this 200sma with a stop under the 200, but again, it is hard to buy a stock that is up from $4 to $6 in 3 days ( that is a 50% gain in 3 days).

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 A stock that is Extended can cause a pull back, but that doesn’t mean that it is a ‘Sell’ in the Big Picture.   It CAN keep running, it could flag and go, etc.  You may want to trail a stop, take a little off if you can’t sleep at night, or  let it run, it is up to you.

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I used this chart to show that Long term, I think that CDE wants to go much higher in this bull run. ‘In at $4’ as a buy & hold position may even look pretty good a year from now if you can ride the choppiness.

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ALO has been a steady climber along the 10sma. Normally I’d expect a dip to back test the 50sma, but these may chop sideways in the future and just allow that 50sma to catch up. Now let me show you the ALO Big Picture…

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ALO WEEKLY  – ALO has formed a long flat base over time and looks to be breaking from that base with the current move.   If we are entering a bull market for a prolonged period of time ( And I think we are), this could make some great gains as it tries to get back up to former highs. Buy a dip.

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IF GOLD PULLS BACK & MINERS PULL BACK, YOU CAN LOOK FOR WAYS TO BUY THE DIPS.  I HAD THESE MINERS IN YESTERDAYS REPORT.

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AAU – Volume is increasing and we have a Bull Flag of sorts. AAU may be ready to play catch up if you have cash and need a lagger.

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EGO – How can I call EGO a lagger? That was an excellent run under $5 to $10!  It is lagging a bit because it didn’t break out when Gold did, but this is a buy if you ask me.  I expected a drop to the 50 & 200sma, but it is strong and looks to be trying to run again.  This can go $8 to $15 or so next, and that is a great trade.

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NG DAILY  – Another great runner was Nova Gold,  $5 to $12.50!   Bull Flag consolidation, this is a buy.

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NG BIG PIC – A large bowl will form, I think that NG should get to $17 ish soon.

 

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THE BIGGER PICTURE

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PICTURE YOUR MINERS IN A BULL RUN. THERE ARE DIPS ALONG THE WAY, BUT THE GAINS CAN BE EXCEPTIONAL.  WHEN MU STARTED ITs BULL RUN IN 2016, NOTICE HOW IT WENT FROM $10 to $65. SOME MINERS CAN DO THIS TOO, WHEN BIG MONEY STARTS REGULARLY BUYING THE DIPS.

 

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As a reminder, some U.S. traders may be thinking ahead about the Markets being closed on Monday for a 3 day weekend. Tomorrow is the last trading day for you to adjust your portfolio if you wanted to. The General Markets are only on day 5 and GDX is on day 14 today ,which is not likely to be the top of the run in Precious metals yet.  That said, you must do whatever helps you to sleep over the long weekend.  If you decide to ‘lighten up’, you can consider buying a dip next week if we get one, or adding a lagger like IVPAF in the report.

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ENJOY YOUR THURSDAY TRADING!

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~ALEX

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URANIUM STOCKS HAVE PULLED BACK.

 THIS MAY BE ALL WE GET.

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URG dropped to the 50 sma area and bounced and is pushing on the 200 sma.  We could see more chop sideways or it could break out. It can be bought in this area or when it breaks out.

 

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UUUU – After bouncing off of the 50 sma, UUUU is pushing on that 200sma. It MIGHT chop around and form a Pennant here, so it can be bought on the break out, or it is  a buy with a stop under that 50ma.