Wednesday July 8th
SPX – After 4 days higher out of the recent lows, the general markets paused and may now drop & back test the recent break out. The 34 sma has held price for months too.
OIL was basically no change, but the XOP dropped after back testing the 50sma. The macd is curling up, so this drop may be finishing up as a 1-2-3-4-5 wave ( dcl) . This sector is not a buy until it reverses and gets back above the 10sma.
GOLD continues higher day by day. It was up another $16 for the day on Tuesday. Gold actually droped in the morning but reversed and it continues to hold the 10 sma fairly consistently too.
GDX & GDXJ broke to new highs. With the purple arrow pointing at the lowest part of the consolidation (or Bowl), we are 21 days higher off of the lows. Since we can run 25 or even 28 days under bullish conditions , I have not recommended selling, just trail with a stop. Breaking from a cup is considered a bullish condition.
GDXJ also broke out & continued to push higher to new highs. GDXJ is actually at 7 year highs now. Please read the chart for updated ‘stop’ placement’ ( But adding at this point is only for short term trades & should be small).
GDXJ actually broke to 7 year highs in the morning, so I grabbed this chart at 10 a.m. GDXJ passed the 2016 highs and now matches the 2013 GDXJ price.
Again we’ll visit NEM. NEM moved higher after breaking above the 50sma, but some of the bigger miners are just slowly chugging along compared to some of the juniors ( See charts of NAK, THM, TRX, HMY, DRD, etc ). See also the opening Theme Picture. This too could climb for a few more days.
TRX – Using this chart on June 19, I mentioned that I was buying TRX near 70-80 cents area. I expected it to move to 2019 highs and I said that it would be a 50% GAIN if we go from 80 cents to $1.20…
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TRX is well on its way, pushing up to $1.05 Tuesday with another good day.
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HMY – I pointed out that African Stocks DRD, AU, GFI were running bullishly, and that HMY was a buy as it lagged but reversed off of the 200sma here. It would probably play catch up and make good gains too. HMY was $3.65 on June 25, $3.25 at the 200sma reversal buy.
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HMY is now $5.05, and Tuesday it hit $5.09. That is a 40% gain in less than 2 weeks, 30% last week and 12% this week already. Congrats to those that jumped on board.
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So some Junior Miners are taking off and really putting in the gains, while some others are lagging a bit. I obviously cannot recommend entering the ones that took off, they should have been purchased 2 -3 weeks ago, however…
I’ve been asked, “Is it still safe to buy a Miner or two, I’m missing some gains?” That is a tough one. Yes these can just continue to melt up for a week or even more, but since it is getting later in ‘time’ ( 21 days of the low), I tend to view things in a risk / reward manner. If a pull back can start at any time, you’d need to buy a Miner near support for a low risk entry with a stop. Also position size is key to being safe., so let’s review this though…
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Do you remember when I recommended IAG, AUY, GORO, MUX , etc as buys with similar chart set ups recently?
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IAG took off, but what about AUY, GORO, and MUX.
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A miner like AUY is making gains but it’s not exactly flying higher. That could change after breaking out. AUY is near support, so it or others like it could be bought as long as a mental stop ( mental is fine) is in place and Position size is reasonable.
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For short term trades ( or buy & hold with a stop), Miners like GORO & MUX should still be ok to buy right here, just use a stop in case we sell down. This actually looks set up to break out & run with volume increasing yesterday.
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So along with those thoughts on Miners, I’ll discuss a few more trade ideas or observations below. Enjoy your Wednesday trading.
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~ALEX
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CDE actually looks like a buy right here too. That 50 sma is right where price is right now.
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AG is also pretty close to support, so it could be bought and you’d just have to hold it and see if it catches fire 🙂
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ELYGF – I just wanted to point out that ELYGF was a leader , but it is slowly starting to look tired as it ran to new highs. This one could pull back further as others catch up.
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CHFS FINALLY started to break out Tuesday with excellent volume, but I knew that it had a resistance zone at 60 cents, so it might take a day or 2 to break free. When it breaks out, That 200 sma may or may not stop price.
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CHFS SAME CHART: I have also seen set ups like this just push up to the resistance area with strong volume ( like CHFS is) and simply GAP OPEN over resistance the next day. That 200 sma may or may not stop price if this gets going.
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CHFS – After all, we do have a giant base to launch from.
WISA is a flat base and price is now pushing against that area of moving averages. This was taken midday after it broke above the 50sma, but it closed back under it. I own it and would add if it breaks out.
RGLS – reversed off of the 50 sma and pushed up 25% higher Monday. Tuesday it put in a doji, but was still up 4%. I like the company and has good potential upside.
BMRA is slowly trending higher, and even though this move doesn’t look like much, look at the numbers. This was roughly $5 to %8 so far. It rides the 10sma.
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BIOC drifted down to the 34 sma and strongly reversed higher Tuesday, closing up 20%. BIOC has been using the 34 as support since April. I have traded this twice but I sell the pops and buy the dips – but I missed this buy unless it pulls back this week.
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VXRT was up over 40 % Tuesday. NVAX shot up over 40% Tuesday. INO & IBIO also moved higher in a big way (12% & 15%). Which ones are ready to run next? I look for the ones on my watch list still near support. I like COCP, VIR, BNTX, and a few others as being closer to support. Lets take a look…
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BNTX has been mentioned often and was a buy at the end of June at $50. I said that I bought it and it shot up to $80. Then it chopped sideways and has reversed off of the 10sma. I still think that this is also going to move to the March highs.
VIR Ran higher in June and then pulled back to the 50 sma again. These all look set up to run from their consolidations .
