Wednesday May 27th – That Looks A Bit Heavy
SPX Day 7 and the SPX gapped higher. We could get a gap fill or just continue higher, it is early in this daily cycle. So far many individual stocks still look bullishly set up and these markets look like they want to go higher.
WTIC – Oil has been moving higher as expected, and many OIL / Energy stocks have done well in their recovery. I will discuss a few at the end of the report.
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Do you remember when I said that the 2nd daily cycle could be choppy and sideways, since the first one was practically straight up? Well that is exactly what we are seeing.
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GOLD dropped and is resting on the triangles trend line. It seems hard to believe that it wouldn’t just drop & tag that 50sma, we’ll have to wait and see. VOLUME INCREASED with the selling, so that always makes me stand up & pay attention, making sure that this does not lead to a deeper sell down. It may just be a mix of selling & buyers buying the dip.
SILVER looks good, crawling along resistance and above the 10sma, but I have to wonder if it will follow GOLD on a drop. 🙁 Time will tell.
SLV – I’d like to just see a consolidation similar to what we saw in the first run. A break below the 200 sma would likely have me sell my USLV. I have excellent gains in USLV, and would like to keep them. I can always get back in if we push higher.
Sidenote: Are you a trader of the Precious Metals or are you Investing in them? Traders may sell if they see a dip coming and try to get back in lower. This CAN back fire with surprises to the upside, but it also may work out to your advantage. Longer term the Miners look very bullish, but in the short term some are starting to look a little heavy, they may get choppy. NO OFFENSE, but last night I had a reader tell me that they sold on yesterdays 1 day drop and gave me a list of 10 Miners to monitor for them to help them buy back in? Selling anytime you want to lock in gains is absolutely fine, I often do that too. I even switch and buy something in another sector until the choppiness goes away, but I obviously CANNOT help all of my different readers ( all selling at different times) jump in & out of their personal list of stocks. I’m Sorry about that, I wish I could, but I can’t. We’ll find entries again, there will be Buying Opportunities, there always is after a pull back . And at any time someone can Email me about a stock and I’ll gladly take a look. BUY & HOLD? Trade in and out? The choice is yours, you just may have to be patient and wait for the next buy opportunity to come along to re-enter. I look for reversals near support. 🙂
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GDX – Miners have become choppy and this does look like it wants to drop. I’d say it depends on what GOLD & Silver do. If Gold bounces off of that trend line, GDX should reverse higher, however…
NEM & BARRICK Look to be leading the way, and NEM is dropping down to the 50sma. This may just be a back test, but I pointed out that MACD as ‘weak’ 2 weeks ago as we made higher highs. I had hoped that it would strengthen on another pop higher, but we popped & dropped as that MACD stayed divergent. NOTE: The RSI lost the 50sma, and I don’t like to see that. I sold my leverage early Tuesday morning and mentioned it in the live area.
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I have said that I like the set up on Silver stocks vs Gold stocks now, since Gold stocks seemed to run and lead the way. Now I need to keep my eye on my silver stocks and see if they follow Gold stocks with a pull back.
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HL – I pointed out in the commenting area that many Miners completed a measured move, and in technical analysis, they can rest / consolidate after they do that. This can get choppy.
CDE has been bull flagging at the 200 sma. Will it hold, or will these follow some of the Gold stocks? The height of the first run is match in the second run. THEY CAN RUN HIGHER and add to the move measured by Fibonacci extensions, but we’ll have to wait and see if these support levels hold on some of these, or are we starting a consolidation phase?
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So far GOLD seems to be choppy and pulling back, but Silver is still holding up at the 10sma, so we’ll just have to see how this plays out.
Weeks ago I said that the second daily cycle could get choppy and go sideways since the first daily cycle was strong. I drew this on May 6…
Well so far that seems to be what we are seeing. We won’t know until later, so if choppiness bothers you, it is ok to sell and lock in your gains, and look for an entry later. So far this is playing out with that choppiness, so now we take it step by step.
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~ALEX
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TRADE IDEAS :
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PLG actually closed green yesterday. It has been choppy & sideways , but it looks to be bullishly crawling under that 200sma, before it breaks out higher.
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OKE – These Energy stocks have been acting very bullishly, still climbing along the 10sma and gains have been great. We have traded OKE, APA, MRO, BE, PUMP, TUSK, WTI, ERF, OAS, PVAC, etc.
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APA could be considered a buy as it flattened out along the 10sma, dropped to the 50 sma area, and could be ready to fill that overhead gap. It did gap open yesterday, it may be best to watch for a gap fill to buy.
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MRO – I sold my leverage early yesterday and put some funds in MRO. Some may like to buy it if it breaks out higher above this flat line.
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FLMN – This one broke out and dropped back down. It could be bought with a stop under the 50 sma.
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URANIUM STOCKS – After a strong run out of the crash down lows, we have a v-bottom. URA rested on the 200sma and looks to be ready to move higher, so it can be bought with a tight stop, and …
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UUUU – was mentioned as a buy set up as it crawled along the 200sma last week…
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UUUU is still crawling along the underside of the 200 sma. This often happens before a break out, so you could keep an eye on this and buy the break out ( Or buy early). It was a buy with the reversal at the 50sma too.
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CCJ broke higher Tuesday through a down trend line, and is above the 13 sma. This is a buy too.
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You also may want to watch DNN, UEC, NXE in this sector. They are ABOVE their 200sma and look good.
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I mentioned this in Fridays report and had several buy set ups along with it. The MJ Sector was setting up bullishly.
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OGI -It did finally break over the 50sma, and yet this is STILL a buy, since it didn’t run away yet. These often do run swiftly, so I added a little to my position on the break out.
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TLRY was in Fridays report too, breaking out here from $9 to $9.50
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TLRY popped a bit more and then was $10.50, so I posted this in the live trading area below the reports. These run FAST, so I added to my TLRY yesterday too.
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TLRY and then it ran to $11.50. You can see how these move, and I actually would expect this to run to the $18 area where the 200sma is .
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Just to show you how these can move swiftly, VFF was a BUY for us,and I mentioned that I bought this one too
VFF – it has really moved quickly after breaking higher, so I highlighted this sector at the end of Fridays report. 
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Trade ideas were also mentioned in the semiconductor and tech sector. They are still doing well. We discussed TQQQ, SOXL, along with stocks like TWTR, AMD, TSEM, SQ, IMAX, etc
