Wednesday – June 10th F.O.M.C.
Today is the FOMC MTG. That might be what we need to spark a fire under the Precious Metals consolidation. Let’s take a look at our various market sectors.
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SPX – The General Markets started the day in the red, but the sell off didn’t gain traction. I had mentioned a possible dip to the 10sma / gap fill, but so far it looks tame, and…
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NASDAQ – The NAZ closed green and is at all time highs. There is that possibility that we will continue to a blow off top, so I would not be shorting this market at this point.
WTIC DAY 33 – Oil sold off and reversed to green off of the 10sma. This still has a little time to move higher, before it will drop into a normal pull back. With a right translated daily cycle – it will put in a low and then bounce higher. On Monday OIL was RED, Oil stocks were up BIG. Tuesday, Oil went green, but Oil stocks sold off…
The XOP and many of the OIL stocks on our list dropped at the open with Oil, but they didn’t really recover with it. I drew a possible pull back to the 10 sma here as a 1/2 cycle low, but it is possible that it just does a 1 or 2 day dip & then continues higher too. A drop to the 10sma may offer a lower risk buying opportunity.
GOLD had a second day of gains after a sharp drop last Friday. It regained the 50sma too, so that looks pretty good, and today is the FOMC MTG. That could be a catalyst to Push gold higher – but…
SILVER did NOT push higher with GOLD. That can change, but so far it couldn’t even get above the 10sma and the stochastics still has room to drop. This may chop sideways for a bit longer.
GDX –The miners did put in 2 days higher after reversing last Friday, but this is (so far) A pretty weak and unconvincing bounce. We need to see GDX get back above that 10sma, and that might happen on a Fed Wednesday, but if not ? What I drew yesterday is likely what we’ll see…
FROM YESTERDAY: GDX has chopped sideways. I have what I drew as a first daily cycle 33 normal days in length. We would now be on day 25 of a 2nd daily cycle. This CAN be in the timing for a dcl here on day 24 (Friday), but another bounce & drop into day 32 would also be possible and normal.
PLG was a BUY within the first hour of trading. I posted this chart in the live area under the reports and said that I added to my current position. It closed up…
PLG closed up 13% with BIG volume. I think that it is ready to run, it is still a buy from here, since it isn’t overbought and can easily run to $2.80.
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I really do like what I see with GOLD, but I’d like to see the Miners start to move and give us follow through too. On our first run out of the lows, GOLD moved first, and then Silver followed. We may see that again now, but Miners need to join in. If they do, they can be bought or current positions can be added to for the next leg higher. I already like what I see with PLG and that is a buy for me. I’m watching for follow through on FED WEDNESDAY.
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I also will add a few more trade ideas and thoughts below for the traders . Enjoy your Wednesday trading!
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~ALEX
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AMD – On June 4th I pointed out Semiconductors, and AMD was in this sideways consolidation. It looks like a cup and handle, but that isn’t a textbook handle. It is a bullish consolidation though. It was holding above the 50sma as a buy…
AMD – Tuesday AMD started to finally break higher, and this is a Buy or a place to add to current position.
TRADE REVIEW: GNC Health – I pointed GNC out as a BUY near 90 cents . It had a target of $1.40, but it could extend beyond that. I saw this base, the high volume pops of interest ( & maybe short cover) and called it out as a buy in the trading area. I also said that I bought it …
GNC– I grabbed this chart midday and wanted to show the initial targets for the move. It was $1.40, but these have all been extending A LOT further than their targets, and it could form a large bowl.
GNC– Unfortunately, it stopped at $1.40 and dropped after that big burst higher. I drew this to show that at this point it might chop around at the break out. I think that it can still go higher so I decided to hold on for now. It is still in profit if you got it near 90 cents, but it might now just chop & consolidate that big move. If it does that for a few days I will likely sell the bounce.
GNC– It is possible that we now also just chop sideways for a while and that could get boring, so if this starts to happen over the next few days it may be best to sell and get back in later.
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FROM YESTERDAYS REPORT : DTIL – Midday they announced a first dosing on a human for Multiple Myeloma. It now looks like it may finally break higher and run. If you like the Biotech / Corona virus sector, this is a buy with a stop under recent lows too. A Buy here near $8.30. (Next chart)
DTIL -It had a low of $7.91 and then moved higher again, closing at $8.58. It doesn’t look like much, but that is actually a pretty big 1 day swing, but it is still a buy here. Look at the upside potential if this gets moving.
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REVIEW OF ANOTHER AMAZING MOVE
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Some of the set ups that I have been able to find are so Bullish that they are breaking higher and making their anticipated measured move (and more) all in 1 day or so. This environment is Rare, and this will not Always be the case, so I am trying to take advantage of it like I said yesterday : “Make Hay while the Sun is shining!”.
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I recommended NAKD as a long flat base with a proper internal set up. I mentioned that I bought it around 65-72 cents.
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NAKD – I love this base! It closed with good volume and the weekly chart is very very good looking too. $0.68
NAKD – This was captured at 2:21 p.m. & it still rocketed even higher to run to $2.60!!! THAT WAS OVER 300% IN 1 DAY. Then closed down at $1.60. A run of this sort is not something that we’ll find all of the time, but the current set ups have such bullish alignment that we are able to enter the trade, grab some quick gains , and go from there. I sold 20% at $2.15-$2.20 as it chopped around, and then sold some more just below $2. This Could continue higher, or may be exhausted and start to consolidate.
** IMPORTANT NOTE: I try to ‘recommend’ stocks at LOW RISK ENTRIES. Usually they are near support, the 50sma, a base, or another area where downside risk is small and upside potential is big. I have a few people writing to me asking where they can buy VISL or NAKD or OAS, etc, now. Yes, they COULD go higher ( So I hold on to some of my position), but NAKD, VISL , OAS, CPE, and other stocks that run 50%+ in a day ARE NO LONGER A SAFE OR LOW RISK BUY after it gets extended. I no longer can ‘recommend’ a safe entry in these stocks, since it could drop from exhaustion. I move on and find another trade.
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BNED– I did point out Barnes and Noble and I said that I do own this. it dropped toward the 10sma, and then reversed again into the close. It may not be exactly ready to go, but that volume is like fuel for the lift off when the time comes. The MACD is rising as a sideways base is forming too.
CHEK IS A MEDICAL INSTRUMENT STOCK, THEY MAKE INGESTABLE CAMERAS FOR COLON SCREENING. THIS SECTOR IS HEATING UP TOO, AFTER BASING OUT FROM THE MARCH CRASH.
CHECK #1: Yesterday I saw that CHEK is pushing at the 50 sma with increasing volume as it starts to rise from a tight flat base . It is a buy if it pushes above that 50 sma, since that can ‘technically’ attract more buying, but I took some of my NAKD profits and put it in CHEK here.
CHEK #2 – It broke the 50 & closed AT IT yesterday. Volume is pouring in ( Think possible rocket fuel).
CHEK #3– I also noticed that it has broken the falling channel with that flat constructive base. It is a buy here or above that 50sma. Upside potential is encouraging.
DYNT #1– Designs an manufactures products for physical therapy, rehabilitation, orthopedics, pain management, and athletic training. It is a tight base that looks bullish and could be starting to lift higher. A quick move to $1.50 is a big gain, and this looks possible.
DYNT #2– They had a strong push higher in March and have since formed a long tight base under the 50 & 200sma. It JUST pushed above the 50sma, also pushing the RSI above 50 % for the first time since March as a buy.
MYSZ– I Bought My Size near $1.30 as it struggles at the 34 / 50 sma. The volume started to surge, so I took a position. It Popped in after hrs a few times to $1.60, but dropped back to $1.40.
ASNA – I have been watching this since it popped last week, but I do not own it. This is making some big moves and the upside potential is big. I like this set up a lot.
INPX is one that I tried to buy, but it is tricky. STepping back like this , you can see the nice long flat base turning into a round base as it breaks higher. Let me zoom in…
INPX was riding the 10sma in may, so I tried to buy this at the 10sma last week, but it never reached it again. These are HUGE SWINGS, which makes it very hard to buy & hold, but also very possibly a BIG RUNNER when it gets going. SO…
INPX – I may use the 8 ema and try to enter a small position again as a ‘buy & hold’ for a bit 🙂 Do understand that this is a rough ride!
