Friday June 5th
Today is Friday, the last trading day of the week. We didn’t see any BIG changes in the market, so I’m going to do this report slightly different than I normally do. Why? It is the last trading day of the week, and I’ll just focus on a few important things.
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FROM YESTERDAY SPX – Day 13 , we are in the next ‘ramp up higher’ mode after breaking above the 200sma.
SPX Thursday – Was down slightly, but its still above that 10sma, so no big change there.
WTIC keeps climbing, so…
XOP ( for GUSH) remains Bullish, it is breaking out and I like the energy stocks quite a bit. I have been pointing them out a lot recently, I’ll discuss a few more later.
GOLD – Broke out and back tested this triangle, and yesterday moved higher $22.80, and we finally did tag that 50sma in this sideways chop. That said…
GOLD could now be forming an even bigger triangle or a box consolidation, but either way it simply remains choppy yet bullish.
SILVER tagged an overhead trend line & dropped. To be honest, it looks like it could pull back further, so
I just decided to draw out a possible a-b-c drop for SILVER, to get it back to the 200 sma & bottom channel line. Notice how overbought Silver is.
GDX – and what can we say about GDX? It is choppy could also tag that 50sma with another small drop.
GDX – It hasn’t been a big drop, just some sideways chop, where Individual Miners can still benefit. GDX is nearly oversold now.
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Those are your markets for Friday and below I’ll discuss stocks and stock picks.
Enjoy you last day of trading for the week!
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~ALEX
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I AM GOING TO DISCUSS A LOT OF STOCKS BELOW. IF YOU ARE JUST HOLDING MINERS AND WAITING FOR THE NEXT PUSH HIGHER, THAT IS FINE. THIS SECTION IS FOR ‘TRADERS’ OR THOSE THAT STILL WANT TO TAKE A POSITION. DO NOT LET ALL OF THESE STOCK PICKS OVERWHELM YOU. I TRY TO HOLD 5-10 POSITIONS AT TIMES, AND I SOMETIMES SELL ONE LEADER TO ENTER ANOTHER LAGGING STOCK, ETC. I AM NOT RECOMMENDING THAT WE ALL BUY ALL OF THESE. THIS JUST GIVES MY READERS CHOICES. 🙂
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BRIEFLY WITH THE MINERS : Some individual Miners are still doing excellent ( FMMGF, MRDDF, NAK, etc are doing well) , others are consolidating, so let’s take a look at a few.
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YESTERDAY I POINTED OUT NAK – I mentioned that ….”This is what happened with NAK in the major run higher that we caught and rode at the end of 2016. It was VERY ORDERLY, and it POPPED and drifted to the 13 sma reliably. Will that happen again? I don’t know, but…
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NAK So far, it has been pretty reliable at the 10sma, and it is dropping back down there now. It may become a good place to add in that area, especially if you see a reversal.
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So I would say that this was the exact buy for NAK that I was looking for.
YESTERDAY FOR CDE I SAID : This may chop sideways as seen here.
CDE – Today I noticed a slightly higher low and slightly higher high, so its possible that we are going to continue to churn sideways while Silver chops around for a while.
EXK is also chopping around the 200 sma and possibly an upper channel
NEM reached oversold, but it could dip further if Gold dips further. This is all part of the choppiness after a good run.
FROM YESTERDAY I WROTE : We have traded APA, CLB, PVAC, SLCA, OAS, DNR, WTI, ERF, AROC, OKE, BTE, VLO, HAL, MRO, BE, PUMP, , etc. You may want to look those charts up, here are a few below.
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Then I posted this chart of APA : APA only pushed up 4% yesterday, but this set up is quite bullish too.
Well, APA is up another 3.75%, so these don’t look like much, but gaining 4- 7% day after day adds up. Not only that, but I think these will eventually pick up speed like they did on the first run. APA is still a buy!
Speaking of picking up speed, PVAC was slowly climbing like APA, and then it popped much higher over the past few days. In fact, it practically tripled this week, and had a 25% pop yesterday. Do you remember when we were buying this near $2 & $3? One of our readers bought near $2 in good size and sold portions all the way up to $16. Congrats on a GREAT trade!
SLCA – $1 to $4, not bad right? I still think this will run higher too. It was up 12% yesterday and they seem to be running back toward that 200sma .
CLB has tight consolidations and triangles, but is also making gains daily. This is bullish and still a buy .
CPE– I love tight consolidations because they can become explosive and I own CPE as it tagged that 50sma & bounced higher. I will try to hold this for a while.
OAS is the same set up as CPE, where it is a large Base with volume Pops. It rode along the top of the 50sma, and I said that I bought it a couple of days ago too. I’m hopeful that the set up will take off higher.
Please know that even though these Energy stocks have simply been steady and moving higher so far, ANY one company can do a public offering to raise money or come out with bad news, and that causes a pull back. I try to keep position size reasonable and I try to own a basket of stocks to avoid a big hit.
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This was from May 20: DOCU was a BUY in April at the GREEN ARROW and it then ran higher. You could just ride the 10 & 20 sma with it…
DOCU so I wanted to point out that in a bullish market with a nice run like this , you often can just trail the 10 sma & 20sma. You can also sell some on the way up and let the rest ride.
I had been pointing out DOCU, ZM, PZZA, and a few others as possible companies that would do well during the virus . So lets look at ZM by request…
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ZM was recommended as a buy again at the 50sma in April near $110. It then got VERY ROUGH…
ZM was VERY hard to ride at that 50sma ( I could not have done it), but at least one of our readers did and added at the 50sma reversal again! She asked if she should sell the recent RAMP UP and get back in again later? I don’t know, if you rode THAT chop, you may just want to sell some and let it ride with a trailing stop ( 10 sma), then buy back on the next dip. That is steep. Congratulations on one of the roughest rides to 100% that I’ve seen in a long time.
Unfortunately I have been pointing out semiconductors and while some have popped , others like AMD simply chopped. It is still Bullish, but others look better. Maybe AMD will follow, but lets look at those others…
MU chopped sideways and was bouncing off of the 50 sma, but was stuck under the 200sma. THIS now looks like a buy that will run higher out of a consolidation.
And TSEM is also looking like it is ready to go. It was also climbing along the underside of the 200sma, and could be bought before it pops.
INTC has been choppy and moving higher. A bit of a rough ride, but it did get back to the former highs.
CREE has been mentioned a few times, and you can see that it is still running up toward the former highs too.
THESE SEMICONDUCTOR SET UPS LOOK BULLISH AND HAVE ME THINKING THAT THE MARKETS STILL HAVE MORE UPSIDE.
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SQUARE was a buy and broke to new highs. I wouldn’t buy this unless it pulls back to the 50 & 200sma on the next dcl.
TWTR -Has been repeatedly mentioned since the lows. Even though it is above the 200sma, it could chop sideways or even drop and become a buy again later. COULD it break higher? Yes, so if I was riding it, I’d still hold it. Buy / Sell / HOLD? Hold.
I’ve discussed SHIPPERS as looking bullish again. There have been some big pops.
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TOPS reversed with a double bottom base yesterday and this ‘tiny’ pop was up 16%. It may be ready to move higher from here ( 15 cent stock, so be aware of that).
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YESTERDAY I WROTE ABOUT VISL WEEKLY: I said in part… This company does wireless communications solutions and a few other things. There is something going on here and I have often seen long bases like this just POP and run strongly. This is an exceptionally strong looking set up.
VISL popped over 200%. Those set ups with tight bases, rising MACD, volume pops and a few other characteristics can get very explosive. I caught that one just on time.
HALL is another that I entered ‘AS A TRADER’. These can chop sideways for weeks, so I don’t always recommend them here, but while I wait for Miners to run again, I do some side trading. If you have been here for a while, you know how much I love LONG TIGHT BASES with increasing volume on the Pops.
HALL may or may not be ready to go, but if it gets over this line, it might have a nice run. ALONG WITH THAT THEME ON BASES & VOLUME, GUESS WHAT?
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ALONG WITH THAT THEME ON BASES & VOLUME, GUESS WHAT? AIRLINES ARE POPPING BIG TIME.
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AAL had a 41% Pop? Are we flying again? I thought that most airlines pulled a bunch of planes and set them aside & have limited flights, but apparently…
DAL – Apparently Mr. Market is bullish on airlines again. Delta has pushed higher & popped all week, with increasing volume. THAT MACD gave this one away with a dropping base & Steep MACD.
UAL – United Airlines looks like it could run from $20 to $80 OVER TIME. This is rather amazing when you think about the hit that airlines are taking.
JBLU – 15% pop on 50 million, buy the pull backs to support.
Bill mentioned ‘JETS’ as an airline ETF, so if you want to take the flight, but don’t like individual companies due to risk, JETS may be where you want to book your trading flight.
‘JETS’ could run to the former highs, or it may do as our Energy Stocks did, and work their way higher after breaking from the base.
