Friday June 26th – Reversals
Thursday started out red in many areas, and ended up Green, so that means that for our Friday report ( The last trading day of the week), we will discuss the reversals. I like a reversal higher on Thursday, especially with the Miners, because if we get follow through on Friday? It paints a nice weekly chart for the weekend report 🙂
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SPX – Thursday we had a drop to the 200sma again and a Reversal. This is why I said that it is not a good idea to go short without confirmation to the downside. In time I do expect a dip into a dcl , so a bounce here should be rather short lived, and it may just be choppy...
SAME CHART: It is day 29 Friday, and it is helpful to picture a 40 day daily cycle. The first daily cycle was 37 days, and notice how the last 2 weeks were just choppy and sideways into day 37. That COULD happen here too.
COMPQ – The NASDAQ also put in a Reversal at its support.
WTIC – Even Oil had a reversal at the 10sma. Oils 10 sma is curling down and I am expecting a dip into a dcl soon too. Oils daily cycles run 50+ days often, so there might still time for Oil to tag that 200sma & then roll over. Whether it will have the strength to do that or not is unknown. This first daily cycle is R.T., so the dip ( DCL) will be a buy. PLEASE NOTICE HOW OIL BOTTOMED IN MID APRIL…
XOP – XOP BOTTOMED 1 MONTH BEFORE OIL, IN MARCH, So it can bottom first here too as a shake out. The 10sma turned down last week and this may be a dcl for the Energy Stocks. They bottomed before Oil, the first daily cycle was 40 days long. This is only day 29, so I’d remain cautious in this sector, but it does look like it wants to move higher. A break out higher from the wedge is a buy with a tight stop under the apex. In technical analysis, we have a falling wedge or Bullish descending wedge pattern and this is oversold. Several Oil stocks look bullish and may do another leg up.
OAS was up 3% a little over an hour into trading, and I wrote this about the reversal at support. It then closed up 7%. I will cover a few other Energy stocks at the end of the report. It may just be a short term bounce though.
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GOLD broke out and has stalled , and it also put in a reversal at the end of the day on Thursday. It doesn’t show up on this Stockcharts chart, because I believe that they take the price of Gold as of 1 p.m. Eastern time. Gold remains bullish here.
SILVER put in a nice reversal, and this consolidation actually looks pretty similar to the one at the last low. A move out of that low was sideways and slow, but then it ramped up higher just like Silver always does. Silver often makes the Bigger Gains in just 2 or 3 days.
GDX has a Reversal right above the 10 & 50 sma. This is good news, because if we get follow through a little higher on Friday (to $36), that will give us a nice weekly chart closing at the highs too.
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GDXJ has a nice Reversal too, right at the 20 sma and after almost filling that gap. A push higher Friday also makes for a nice weekly candle. 🙂
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We had REVERSALS pretty much across the Board Thursday, so Friday could be a nice day of follow through higher. We need follow through though, to make the weekly candles close near the highs and not close as a doji.
I will discuss a few trades below, Enjoy your Friday trading!
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~ALEX
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I pointed out that the African Miners are really taking off after breaking out. I showed DRD, AU, GFI as examples. Well…
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HMY is an African Miner too, but I’ve notice that it currently lags. I’ve been watching it for a move higher, and Thursday looks like a nice reversal. Hmy is a buy to me.
I liked EXK on June 23rd and posted this as a buy around $2 as it broke that 200sma.
EXK paused Wednesday and put in a reversal of its own Thursday, closing at $2.12. It is now ready to break from the consolidation, and I would add to position as it does.
TRX – I own TRX and since it is still near support and at the bottom of the consolidation, I feel that it is a low risk entry. Another Leg higher to the 2019 Highs is a very good %-gain.
AUY had a Reversal Thursday , right off of the 50sma. You can see what is happening here: We start early in the day with a sell off, and it looks depressing, but by the close they have reversed off of support. That is about the best that you can hope for on a day that starts off selling down. Now the best that we can hope for is to see follow through higher.
Now we hope to see follow through higher too, and a break out here is a place to buy or add to current positions for a run higher. Look at the first run from the march lows. AUY was choppy buy higher each day in April, and then it really took off.
I posted this yesterday for our COVID-STOCK WATCH:
BNTX has been consolidating bullishly and popping here and there along the way. This may be ready to go right now, since this sector is making great gains. I may buy this Thursday if it starts to rise.
BNTX lagged most of the morning ( it was even red & then up 1-2%), but it took off in the final hour and closed up 9%. This was the buy and it could take off like the others have, since it has a nice base.
DTIL is a COVID Stock and it did a false break above the 200sma. I bought it, and unfortunately it MIGHT drop to the 50sma, before putting in a reversal and breaking out. So far that 50sma has been reliable, so I may add to a REVERSAL there, and lower my dollar cost average IF THIS SET UP remains bullish. This could still run from $8 to $16 the way these have been going, and buying here will not matter then.
FROM YESTERDAY: MRNA is also on support and could easily run from $60 to $80 or $100, the way these move lately.
MRNA dropped to the 50sma at $60, so I posted this in the live area below the report. I mentioned that it could be at support and reverse here.
MRNA did reverse & closed at $62, so this might be ready to go higher again. It could have been bought at $60 with a stop at the 50sma,it can be bought here, or it can be bought if it breaks above the blue line. It remains bullish, even though ti didn’t run with the others yet.
HTBX was in yesterdays report as a cheaper Covid biotech. I own it, it is Covid-related, and is reversing on support. It has dropped & reversed 2 days now and I saw it up above the 10sma in after hours. It could be ready to go.
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SXTC – I mentioned this about an hr into our trading day. SXTC was reversing higher off of an important support ( 50 sma). I have been wanting to re-buy SXTC, so I did.
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SXTC – You may recall that we bought this in early June & it popped about 60% one day. I sold 1/2 and then sold the rest the next day. I re-bought it reversing off of the 50 sma. It closed up 18%. This MIGHT be ready to run again.
MITO popped and dropped on BIG volume, but it still closed above the 50 & 34 sma. Its worth being on the watch list, in case it takes off for real. This one is tricky with that pop & drop though. I’m just going to put it on a watch list to see what it wants to do from here.
OAS as mentioned in the report, Many Energy stocks are reversing at support and could run higher. They are riskier, but a stop below support solves that. I’ll discuss a couple more…
APA has reversed on Support, and APA makes very nice gains when it moves higher. This is a $4 to $17.50 recovery , in just 2 months so far. IF ENERGY IS READY TO MOVE HIGHER, This is a buy( Just use a stop below yesterday.
CLB is another Energy stock that has made great gain ( $7 to $30) and has pulled back to support at $20. It becomes a buy with a stop here too. $20 to $40 is possible, but even $20 to $30 is a great gain. This is oversold.
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Important: One of our readers emailed this to me ( Thank You W.W.)
The headline was: Credit Suisse AG Announces Its Intent To Delist And Suspend Further Issuance Of Its VelocityShares™ ETNs
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ETN s – JOINING THE DINOSAURS : I have traded a few of these ETNs in my day, but they are being done away with as we enter July. Please take note of them and sell them soon. I have traded USLV & UGLD recently as leverage for the metals . Again, these ETNs are no longer going to be trading in Mid- July.
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NOTE: SO THE MARKETS HAD REVERSALS, BUT THEY’VE ALSO BEEN CHOPPY AND SIDEWAYS AT TIMES. WITH THAT, WE REDUCE RISK & FRUSTRATION BY KEEPING POSITION SIZE SMALLER UNTIL WE SEE HOW THINGS START TO PLAY OUT. IN OTHER WORDS, AN ENERGY STOCK LIKE APA FOR EXAMPLE: I WOULDN’T PUT 20% OF MY ACCOUNT IN THAT ONE POSITION, MAYBE NOT EVEN 10% TO START. I’D PROBABLY START WITH 5%, and IF IT ACTS CORRECTLY AND STARTS TRENDING HIGHER, ADD ON A DIP TO GET IT TO 10%, IF THAT’S YOUR GOAL.
