Wednesday July 1st – Can We Get A Solid Run In?
SPX closed above the 10 sma & is very close to a break out above that trend line. If I see that, I have to recognize that as strength and a dcl was most likely put in place at day 31. It is a buy with a stop or wait for a break out to buy.
NASDAQ – What can I say about the NASDAQ? What dips? It closed above both the 10sma and the broken downtrend. This is simply Bullish.
VIX – We were watching the vix for clues, and it broke down from the recent ‘support’. This VIX may become a descending wedge.
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YESTERDAYS REPORT: MU (& a few others) remained Bullish so far and actually looks like it wants to break higher and rally out of a long consolidation. That gives us a mixed bag and I’ll have to continue to monitor things, especially as the Markets finish up the 2nd daily cycle.
MU – Well I guess that really did want to break out, didn’t it.
WTIC – Oil remains the same. OIL STOCKS? They still look like they are getting bullish. They may follow the markets…
XOP – This looks like day 31 dcl could be forming, because a descending wedge is Bullish if it breaks higher. It looks to be breaking higher, so…
YESTERDAY I SAID: I looked up APA, CPE, OAS, CLB, and a few others and it is a bit mixed there too, but they do, for the most part, look like they’ll make another run higher. EDIT: TODAY THEY WILL BE AT THE END OF THE REPORT. MANY LOOK LIKE THEY SHOULD BE WATCHED AS A BUY OPPORTUNITY.
YESTERDAY I WROTE: APA sits on support here & would be a buy as it breaks higher. If the sector still needs a dcl, it might break out and back test (choppy). This will be in the report at the bottom.
USD – The USD is choppy and sideways in this daily cycle. The USD daily cycles tend to be short, so I just drew a choppy path back to the 200sma. Gold has been slowly rising as the USD has been slowly rising too.
GOLD – Gold broke out and back tested vthe 10 sma, as mentioned in the last few reports. We finally seem to be getting some upside action. I hope that this will run for a week or 2 .
SILVER is finally pulling away too. I have to point out that the MACD really isn’t on board right here as we reach the prior highs, that keep my guard up a bit, but this CAN just run and pull back later.
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FROM YESTERDAYS REPORT: GDX – This is also a bullish consolidation that I would expect to break out higher, so now a stop under the red 50sma should be a place where I would not expect price to go for this to be acting the way we are expecting it to.
GDX – We broke out and with a stop raised to the 50sma we can just watch and see if the gains keep adding up. Many Individual Miners look VERY good.
GDX MONTHLY – It is the end of the month and we have a break out, a back test, and a continuation higher. The next significant resistance is up near the $40 area.
GDXJ -With GDXJ a small short term ‘measured move’ reaches about $52 ( They can extend).
GDXJ WEEKLY – When I go to GDXJ on the weekly chart, this honestly looks similar to the 2016 run 1/2 way point. At that time, we ran strong from January into April, consolidated into May, and took off again into August. Simply put, that gave us an 8 month rally with a larger pause in the middle. And…
GDXJ WEEKLY Shows us at a resistance area. We could break out this week and the weekly RSI is not at normal ICL highs yet.
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It looks like the Miners are off and running, and the rest of the week could be rewarding in that area. In Canada, the markets are closed today, in the US, they are closed Friday, so Tomorrow is the last trading day of the week in the US. Enjoy your Wednesday trading!
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~ALEX
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FROM YESTERDAY : AG -I own it, I’m slightly disappointed at the lack luster move so far, but a quick run to $11 is possible and would be rewarding as a trade.
AG broke out, it may just do a straight line run from here to recent highs.
From Yesterday : BTG, AUY, IAG, MUX – This is a bullish set up, and if it breaks out, it really should run. Please read the chart.
IAG – BTG, AUY and many others broke out with increased volume. SO far , so good.
GPL has a nice break out above the 50 sma and the short term down trend, however…
GPL is also very close to breaking out from a multiyear down trend.
PLM –in early June PLM Popped 200%, dropped back down and then popped 100%again. It looks like it is now breaking out from a bullish descending wedge after reversing at the 20 sma. It is oversold and could make another nice rn, but this one may be a bit more for the short term ‘traders’.
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I would keep these Energy Stocks on a watch list, especially for today ( Wednesday is oil inventory report day ).
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YESTERDAY I SAID: APA sits on support here & would be a buy as it breaks higher. If the sector still needs a dcl, it might break out and back test (choppy).
APA still didn’t break out or down, but some of these Energy Stocks look pretty good. We traded the dips on APA as it made that run from $4 to $17+. A strong break & run could double.
Did you know that CLB ran from $7 to $30! We traded it here along with APA, MRO, PVAC, CLB, CVI, OAS, CPE, etc etc. It has pulled back to the 50 sma at $20 & reversed yesterday.
CLNE– Is breaking out slowly, but the miners started breaking out this way too, and then suddenly surged higher. This is still a buy with a stop under the apex.
CPE – I would call a stock that acts like this a higher risk ( business may be hurting) , but also High reward. Both times CPE moved off of the 34 sma, it more than doubled. CPE is over $1 and very oversold.
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OKE is trying to recover the break down at the 50sma. We traded OKE as it ran from $12 to $50!
I have been saying that MRNA and CODX are buys at the 50sma. If you don’t mind the chop, we have a ‘Buy at the 50sma’ Pop and Drop situation. It could just run away higher at any time, but for now it has a very consistent pattern. CODX was up 11% yesterday, so you could even day-trade this for a quick 10% gain each time it drifts to the 50sma.
I bought MRNA yesterday and I still think that it is a buy (Corona-related).
CHEK is one of those bases that keeps Popping, and those POPS are not small. I do still like this one as a solid base with a very proper set up. This looks like it could break out and do well. A push above $0.60 could start the run. I re-bought it yesterday anticipating a break out.
