Thursday May 7th Is Here

We have a lot to cover, and I just want to keep it simple, so let’s just get to the charts…

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SPX JUST YESTERDAY I WAS MENTIONING:  If this ‘buy the dip’ crowd keeps stepping in, we could have a choppy top and a quick drop to 38% Fib by day 40 or so.  EDIT: Now I want to show you something in addition to that thought…

Now I want to show you something in addition to that thought…

 

SPX – I also drew this, a bounce & drop to the 50sma, saying that a first daily cycle isn’t always worth ‘shorting’, since they can remain strong. Well..

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SPX is on day 31 and that may be playing out as noted above, however, …

 

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Take a look at the NASDAQ – The Tech Sector is strong again out of this ICL, it remains at recent highs on day 31. I still see some pretty good looking stocks out there, I’ll show you a few at the end of the report,  so again I want to mention that the dip may be worth buying, but this drop may not be worth shorting.

 

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WTIC – Day 11 is early, but Oil has basically tripled off of the lows, so it may pause here at the 50sma.

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XOP – The energy sector is chopping sideways and this may drop & back test that 50sma.

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  I still own APA, and many of these have been running up that 10sma.  I’ll have to watch how it acts around that 50sma if it breaks the 10sma & gets down there.  Many of these stocks look similar, bouncing off of the 10sma & 50sma, so they are still bullish, but choppy.

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The good news should be that GOLD is getting late! This is day 36 ahead of that ICL and we are also running out of room in this Triangle. This can break out higher and run at anytime, or it may do a quick shake out as shown, but I still expect higher price. All we can do is watch it now, time is pretty much up.

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It is the same story with SILVER : It is getting late in the cycle count and this has been crawling along the 50sma. We are waiting for an upside break out. Silver is finally reaching an oversold level.

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I’m expecting either of these moves for Silver at this point.

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GDX & GDXJ dropped Wednesday, but they remain above the 10sma so far. I am viewing this as day 3 at this point, so that day 33 Friday reversal low would not be taken out if that was a dcl. If we break that low, this would be day 37 Thursday, very late in our daily cycle.

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I went back to take a close up of that May ICL 2019 run.  GDXJ did break the 10 & even the 13 sma on the run higher a few times, but it was a series of higher lows until that intermediate cycle topped 3 months later.

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  My expectations haven’t changed, but it is just a matter of time and this consolidation has dragged on & on. If you believe in daily cycle counts, then you know that it is getting late in the first daily cycle and a directional move should follow soon.  The Pull back into a dcl has been extremely mild, and time is running out,  so I am expecting a push upside sooner and not a much deeper dip.

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  The Lows are either already in place with Golds Triangle and the Friday reversal in GDX, or we get one quick drop & then a move higher. I never say ‘NEVER’, but I just do not see anything bearish in this set up, so all that we can do is…

Wait

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~ALEX

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CDE  dropped over 5% by 11 a.m., so I was mentioning in the live trading area (below each report), that this would be a perfect low risk buy area. You can put in a TIGHT STOP right at the 50sma and losses are 10 cents / share if it goes against you. Well, I didn’t add, but…

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Maybe I should have? CDE  bouncing right – off – of – the – 50 sma.  So far, so good.

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NAK –  Cory pointed out Tuesday that NAK was  pushing higher, and that continued Wednesday too.

 

NAK – So I wanted to take a look at the bigger picture and The NAK Weekly chart . It is becoming very bullish long term as it breaks from a multiyear base.

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It has been mentioned in recent reports that Uranium Stocks are bullishly moving up & out of their lows too.  One of my newer readers was asking about them a while back ( he already owns some).  I was going to point them out when they started to pull back,  but right now they are barely pulling back .

So I wanted to take a look at URG and discuss one way to view it…

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URG took off running  out of the lows and has broken above both the 50 sma and the 200sma.  It has now stalled and you’ll notice that it has been travelling sideways along the 200sma.  Look at this chart: THIS MIGHT BE ALL YOU GET FOR A PULL BACK, so let’s discuss the possibilities…

 

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URG :

1. I feel that URG could continue to chop along the 200 sma as a bullish consolidation, since it isn’t oversold yet. See the red choppy line.

2. Of course, it may drop to the 50 sma as a back test too (purple line), and since it is not oversold, you may have a little more time to watch it and see how it plays out. If it just keeps chopping sideways, that may be your best buy.  If it breaks down, it could become a buy at the 50sma. And…

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URG WEEKLY BIG PICTURE – This does show that it could drop to the pink level, and that is where the 50 sma is on the daily chart above- so this is another way to watch it over the next few days.  Also know that something this bullish could just take off higher at any time as it tries to break into the orange area.

Overall, this above chart of URG is a Bullish double bottom and a massive base with great upside potential over the next couple of years, if this sector remains bullish.

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DQ has been known to run strongly. I have traded it in the past, and I know Maria likes this one. It broke out with volume and could be ready to go again. This is a buy above the 50 sma.

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I had SHOP in the report on APRIL 9 with this chart and again after that. I didn’t know anyone bought it, but I got an email saying…

 

“SHOP has been great, when should I sell it.”  Wow, congrats! 🙂  That is a bull flag break out and believe it or not, this can do a straight line move beyond $800-$900. You got in at $400, so my thinking is ride it with a stop from here or sell some & let the rest go. They released earnings Wed morning and are benefiting from increased business.

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Note: SHOPIFY IS AT NEW HIGHS, RIGHT? And so is AMZN obviously.

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THIS IS WHAT I MEAN AT THE BEGINNING OF THE REPORT WHEN I SAID THAT I AM SEEING BULLISH STOCKS , THOUGH WE ARE READY TO PULL BACK. WE DO STILL HAVE BULL STORIES WITH THE COVID VIRUS. ONLINE ORDERING IS STRONGER , FOR EXAMPLE…

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ETSY  released earnings and dropped ‘a little’ after hours. This may become a buy on this dip, this chart is at new highs like SHOPIFY.

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PYPL is also breaking to new highs. That makes sense that PayPal would benefit from increased online shopping.  These are the ones that you may want to ‘Buy a pull back’,  if we get one with a dip to a dcl in the General Markets.

 

SPCE also released earnings and then broke over the 50 sma with Volume. They announced a deal with NASA too, so I think that this can now run, and boy did THIS run earlier in 2020. This could be COVID-Proof to a degree.

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SPCE had a $7 to $42 run before the market crash, so this break out may run nicely.

 

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ANOTHER THAT MAY BENEFIT FROM THE COVID PLAGUE:

I actually have 10 charts of BYND ( Beyond Meat) from the reports in 2020.  This was another ROCKET that came back to Earth, but it then based out last Nov – January. This was a BUY at $80 breaking the 34 & 50 sma with volume.

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BYND- Follow through was great, was it heading back to that $250 area? It looked it and then the markets crashed it back to the lows again, so…

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BYND was back at the $50 area in March and ran to $80. A drop to the 10sma would now be a buy.

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BYND

1. BYND did drop to the 10sma that week, and

2. Then it ran straight through the 50 sma and on to that green 200 sma. $50 to $126 now.

Now that MEAT/BEEF is scare during the coronavirus ( In the US Tyson had to shut down for a while, shortages are spreading, and even Wendys restaurant took burgers off of their menu in some states).  WHAT COULD REPLACE BEEF?

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WHAT COULD REPLACE BEEF? Beyond Meat could.  It is kind of hard to buy it after this gap open.  Put this on a watch list, and buy it if it dips with the general markets, because this could run back to that $240 area.  I honestly think this break Wednesday with that volume?? This could easily get some panic buying and could just run straight line to the highs.  Congrats if you own it already.

BYND – If someone did not own it and wanted to start a small position, you either ride that small position higher or add on a dip if it pulls back. There is a gap, but it may not fill.

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PTON – Gyms are closed, I guess people are working out at home more.  PTON is breaking to new highs. They released earnings & were up another $4 after hrs. My point is …

My point is that there are bullish pockets out there, that actually are business that may be even more successful under current circumstances. This might keep the DIP into a dcl for the General markets from dipping very deep. This is why I am not personally shorting the general markets. Shorting  may or may not work out.

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Another Bullish sector is the SOLARS, you may want to look at these charts.  I will probably cover a few in future  reports.

WNDW +45%, SUNW, ENPH, SEDG, – several other look about ready too ( JKS, CSIQ, SPWR, VSLR,  ) READY TO GO