Thursday June 4th – Trading
YESTERDAY I TALKED ABOUT BULLISH BOX CONSOLIDATIONS. THEY ARE CHOPPY , YET CONSTRUCTIVE…
.
SPX – Day 13 and the general Markets continue to march higher. You can actually see a box consolidation took place here too, and now we are in the next ‘ramp up higher’ mode after breaking above the 200sma.
.
The XOP is breaking out of a bullish consolidation too, as OIL continues higher out of its ICL. I discussed Energy Stocks as a buy.
.
GOLD is actually forming a box consolidation too. These are choppy and they can try your patience as you wait for it to resolve one way or the other. We are expecting a break higher. Notice that it is still bouncing off of that triangle trend line. The RSI is right at the support line, the stochastic is not oversold, so this can continue. I went to …
.
I WENT TO GOLD at 6 a.m. Eastern – Gold reversed off of the 50 sma this morning, hopefully we move higher, but this can still remain choppy. Cycle count on Gold is NOT CLEAR. If you call the drop on April 20 that started the triangle as day 1, yesterday would be day 31 and this would be day 32 ( or day 1) with a day 19 peak. That count is not clear though.
.
I drew a reasonable count for SILVER – If day 24 was not a dcl, we’d be on day 56 and still at the highs, so I cannot accept that. I have always said that we likely saw a short 24 day cycle, and this would now be day 32 of a 2nd daily cycle ( Still near the highs).
.
When you get SUCH A DIFFERENCE between Gold & Silver, you have to expect that Miners will not be clear cycle wise either , right? GDX & GDXJ are made of both Gold & Silver stocks, so I use many other methods of analysis to try and determine where we are. Conclusion: This all still remains very bullish.
,
GDX started to roll over, so if Gold & Silver are both late in their cycle counts, this makes sense. I have pointed out that I was seeing NEM, Barrick, AEM, etc as looking weak, they started forming rounding tops with weak MACD , divergence, etc, so their strong run needed to take a break (DCL). We must be dropping into our next low , with the RSI breaking the 50 level and the MACD unable to gain any upside momentum.
We will have a BUY when we get our next DCL. Guessing where it will be, or trying to buy all the way down may or may not work, but waiting for price to cross back above the 10sma is the technical Buy. Individual stocks MAY BOTTOM Before others, so look for areas of support , etc. I’ll give an example below too, with NAK.
.
Remember: This first line of faces is how we wish Bull Markets were, the second one is how they really run, and the emotions that come along with the chop. So true.
.
We had a question in the live trading area below each report yesterday and I wanted to repeat it here. We only have 10-20 traders that post in that area, but I literally have hundreds of subscribers from all over the world, so maybe someone else can help? IF anyone can answer this question, please shoot me an email alex@Bigleaguefinance.com
.
QUESTION – Silver / Bitcoin ETFs in UK? Thanks!
.
I will post a few trade ideas below, enjoy your Thursday trading!
.
~ALEX
.
NAK – 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…
.
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, expecially if you see a reversal.
.
FROM YESTERDAY I WROTE : CDE dropped to the 200sma, so it could also break down further, but I’ve drawn it here with the possibility that the Silver stocks hold up better than NEM, BARRICK, etc. This would reflect the same action that we saw at the 50sma. It bounced along the 50sma 3 times.
CDE broke down but started to try to recover. I captured this chart midday just to show encouraging price action, even though it got below the 200sma. So I also wanted to point this out again, from yesterday…
BOX CONSOLIDATIONS BOUNCE ALONG SIDEWAYS, AND WITH CDE…-
CDE may chop sideways as seen here.
.
SHIPPERS STARTED TO SET SAIL YESTERDAY
Shippers are tricky, choppy, and may not be for everyone, but if you catch them at the right time, they can make fast gains.
..
DWSN popped 10% from a base above the 34 sma, and suddenly just about the entire sector started to set sail 🙂 This popped 10% , but it still could be considered a buy with a stop.
.
NM has been basing , moved above the 50 sma, and popped 9% with very strong volume yesterday too. This looks ready to run higher over time too. It is a buy with a stop under the 50sma. I would raise that stop as price runs.
NM WEEKLY – If you look at the weekly charts of many of the shippers, they have bases and good volume as of 3 trading days this week.
SBLK popped 15% and still looks to have much more upside. The hard part is trying to buy it if it doesn’t pull back first.
SBLK WEEKLY -It broke the down trend last week and closed above the 10 week ma.
Other shippers that we have traded are DSX, SB, EGLE, FRO, SALT ( SALT popped 10% , but is also is a buy right now) , etc.
.
REMINDER FROM YESTERDAY: THESE ARE COPIED FROM YESTERDAYS REPORT
.
We have traded APA, CLB, PVAC, SLCA, OAS, DNR, WTI, ERF, AROC, OKE, BTE, VLO, HAL, MRO, etc. You may want to look those charts up, here are a few below.
APA only pushed up 4% yesterday, but this set up is quite bullish too.
OAS popped 6% yesterday and I did a little research. That POP at the red arrow was from their earnings report, so now that earnings is behind us, I bought some OAS for a trade.
CLB – I traded CLB and I think I made roughly about $2 / share on it, but take a look at this run. That is 200% off of the lows? I knew these stocks were going to do this, and I wrote in my reports that these stocks would probably run up and at least fill those Big Gaps on the left, but the chop was difficult to ride at times. This did drop from that $21 high to $16 a week later, and THAT IS NOT EASY TO RIDE.
.
HIGH RISK / HIGH REWARD STYLE OF TRADING
.
AYTU -This is a corona test kit stock. That is a bullish set up so far. I took a small trading position yesterday . I may give it time, but it is at the APEX and should break soon. The weekly looks Bullish too.
VISL WEEKLY – 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. I also took a position in this chart, but the daily chart was very choppy and looks very difficult, so its just a starter position. I am just doing a buy & hold for a week or so and see what I get. I just wanted to point this out for the HIGH RISK trader or for you to watch what a base like this can do, BUT IT IS VOLATILE, so not for everyone. 🙂
