Aug 21st – It Is Friday!
SPX – The markets are overdue due for a dcl, yet they gapped down and recovered again. These markets are strong.
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WTIC – Oil dropped and recovered the 200 sma, but…
XOP -I mentioned that the Energy Stocks are not celebrating with Oil. I also said that I sold mine this week, just because this looks heavy as the 50sma started to curl lower.
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UUP – The USD had a good Pop Tuesday and Gold dropped. The USD then pulled back Wednesday and Gold moved higher. This DOES look like the lows in the USD ( & UUP). The MACD is strong. If the USD just put in a dcl, and possibly an ICL of its own, The Precious Metals may have a struggle ahead.
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If the USD just put in a dcl, and possibly an ICL of its own, The Precious Metals may have a struggle ahead. They could become very Choppy & Toppy, or they may start selling off.
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GOLD #1 – Notice 2 days ago when the USD Popped, Gold dropped. Yesterday the USD pulled back, and Gold pushed higher. This could become choppy, so what might that look like if it doesn’t just sell off immediately?
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GOLD #2 – Gold can pop & drop & pop & drop as seen here in April & May, if it just doesn’t start to sell off. This went choppy and then rallied, but I have to expect a sell down to an ICL after this choppiness.
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SILVER – Notice that while Silvers price is rising, the RSI went flat and The MACD continues down. This is not a strong push higher.
GDX – And this is the very definition of Choppy and difficult. GDX dropped into the DCL as expected, and now has a day 5 Peak. One day it looks good and then next it is dropping. This day 5 peak might be as high as it can go if the USD starts to ride out of a dcl. I bought a few Miners at the dcl, but they are short term trades and I may sell them on Friday- options expiration.
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I have mentioned a few times that my positions are small and few now, and that makes for boring trading. I put on a couple of trades and a couple are working out and others that looked great are not. BLDP was one of the better looking set ups and I got stopped out on yesterdays drop. It was a little choppy before the last run from $10 to $22, so we may be seeing that, but I had to bail out just in case it threatens to break down below the recent low. I MIGHT get back in if it reverses, but the choppiness is frustrating until a good run starts.
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Also noteworthy is the fact that in May, June, & July we had 200+ comments in the live area below the reports. Trading was exceptional, Miners were running strong, and things were great. We WILL have that again, but lately with the August choppiness things can be boring and we are not even hitting 100. That is understandable, since the last 2 weeks of August are often ‘Summer Vacation’ time in the Northern Hemisphere, but we’re still awake and paying attention to how things unfold. An ICL in the precious metals market will present itself over time. I did find some set ups that actually look good again, so they will be below. I pointed out the Uranium Stocks recently, and they popped yesterday, so we’ll take a look there too.
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Enjoy your Friday trading and your weekend!
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~ALEX
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UEC – This was Mondays chart and I put it in Tuesdays report, showing that they remain bullishly in a consolidation riding the 50sma.
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UEC popped yesterday and then sold off into the close, so this may be ready to go higher. If you bought it Tuesday with a stop under the 50sma, you are doing well. (It has been a choppy sector during this consolidation).
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URG is a bit more of a sloppy wide consolidation, but it may be forming a descending wedge. If it breaks higher, it is a buy. This one looks a bit less bullish, however…
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CCJ – Crashed with an earnings report that mentioned a mine shut down that was ready to start back up. They claimed that they are financially sound and ready to move forward, but people bailed out. It lost the 50sma, crawled along under it and now it also Popped yesterday.
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GAU – This is a Gold stock that found support at the 50sma again. It looks ready to climb higher rather than break down, BUT this sector is on the radar as a ‘Caution ahead’ sector . That means that if you wanted to buy a Miner like this, you’d use the 50sma as a stop and see if it could run back to $2 or better.
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I want to show you something with a company called Lifeway Foods:
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LWAY – Notice the Big Pop on July 27 , and then crash back to the 20sma. Riot did that recently & I pointed that out as a place to buy.
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LWAY then Popped higher again, but dropped back to that 20 sma again at the end of July. So LWAY actually started to ride that 20sma, even though the swings were wide and difficult to ride. I point this out because Riot is chopping like that now. Is that bad, or is it OK?
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LWAY – Now look back at the end of July. It always looks easy in hindsight.
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RIOT – So again, Riot seems to be dropping & popping along the 20sma too. If Bitcoin is going higher, RIOT should have more upside. It MIGHT drop to the 20 sma first, and hopefully that holds rather than another visit to the 50 sma.
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RIOT -I posted this chart in the live area for a reader ( Moe) on Aug 19th when he asked if RIOT was a buy. I simply mentioned that it is choppy and it could chop around a bit before moving higher. There is a trend line too.
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BITCOIN – While chopping higher I often see a ‘double bottom low‘ form before the next run higher, so we may see that today. RIOT would likely drop to the 20 sma.
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GROW – I own this FTFT, & RIOT for Blockchain trades. It tagged the 20sma yesterday and looks like a back test too, so this could be a place to buy or add to current positions. Grow has moved from $0.75 to $3.75 (Big gains), but is also choppy and hard to ride at times.
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BIOC BUY / SELL / Or HOLD: – Speaking of choppy, BIOC is overall good looking, but it swings in a very wide price area as it tries to work its way out of its base. Yesterday it tagged the 50 smaa and looks like a back test of the recent break out, and volume does seem to be light, but… THIS MAY BE THE LINE IN THE SAND. A reversal may be a buy, and break down may be a sell.
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Excellent trade, but it may be breaking down.
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HTBX – We bought this one in that base near 70 cents and it ran up 500%. I sold it all the way up, and wanted to buy it on a pull back, so I’ve been watching the 50sma for a reversal and stabilization. Yesterday it broke down, so this is either a shake out & I’ll watch and see if it recovers, or it breaks down & reverses to the base. Since others have broken down ( CHFS, NOVN, etc ) I haven’t bought it and wont unless it recovers and shapes up. I was hoping for a giant CUP. We’ll see.
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IRVRF – This is just an example of a choppy sideways consolidation after a strong run in June. I am not buying, I just wanted to point out to you that these smaller miners that ran strongly can chop sideways and consolidate those gains. When we drop to an ICL, you may see some of the stronger ones do this, and they will become great buying opportunities.
