Wednesday September 23rd – Stock Trading
SPX – We do have a swing low in place, but it is unconfirmed ( maybe even unreliable) until it closes over the 10sma. The 10 sma is actually above the 50 sma, so a recovery of the 50 is viewed as Bullish too. That would be a ‘shake out’ to technical traders.
THE NASDAQ was very close to closing above the 10 sma ( & 50 sma), but it does appear to have broken through a downtrend line. A push higher Wednesday should give us at least a short term bullish recovery. To me this is a low risk buy.
WTIC – Wednesdays are when the Oil inventory Report is released. So far Oil landed on the 10sma that is curling up and held it as support.
GOLD ( & Silver) did not drop further, but on day 29 it should not surprise us if the selling resumes.
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EDIT: I have replaced the SILVER CHART: This is SILVER at 6 AM and as you can see, it broke the dcl. Gold has not yet but it is close.
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GDX paused on day 29 too, so further selling may break the dcl too. Also …
WHAT I WROTE IN YESTERDAYS REPORT FOR GDX STILL APPLIES…
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GDX could bounce first with the Metals Tuesday & Wednesday and then they may have a final drop. After all, this has been a very sideways choppy consolidation so far, right? We have dropped to this $39 level a few times over the past several week and then bounced.
GDX we can just take note of the fact that this has been a very left translated daily cycle that peaked on day 5. The MACD just rolled down on this drop and look at the stochasitcs. A normal daily cycle has about 5 days left in it and that stochastics is not oversold at all. We should try to be patient and see how this plays out.
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– The General Markets may be putting in a dcl, there are many Bullish set ups as mentioned in yesterdays report.
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– Today may shed some light on the direction that Oil will take, after the Oil inventory report is released.
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– Gold , Silver, and Miners paused their sell off without taking out the prior dcl, but there is still time, so I am being patient and watching how this plays out. Many Miners have pulled back nicely, so we are watching for a dcl and they usually come around day 33 on avg.
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In yesterdays report I discussed many stocks that were setting up bullishly, even as the markets sold off. I thought that this might indicate that the lows ( a dcl) may be close. I have taken a couple of trades long the General Markets. I will discuss trade set ups again below.
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Enjoy your Wednesday trading!
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~ALEX
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Yesterday I decided to sell my SPAC and all but 250 shares of WKHS to trade other set ups. I will explain this idea a bit further below, but there is nothing wrong with SPAQ or WKHS. It has been a great run and it can keep going, but as a trader, I just decided that I want to put some of those funds into the Bullish set ups. After a sell off, some companies become oversold and make low risk trade entries. I am also planning on re-entering into Miners when they bottom also.
So I wrote this in the comments. You can look these charts up and see the bullishness, and I will also be covering a few below. These in addition to several others mentioned yesterday seem to be hinting at the Markets putting in a dcl.
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Yesterday I wrote about DOCU —
1. Consolidating sideways for 2 months and then broke out very bullishly.
2. Then the markets sold off and DOCU got caught up in the sell off. It is very oversold, but
3. Notice that on Monday DOCU no longer sold down. It is back at that consolidation low and it reversed higher.
4. This is a short term buy and maybe a longer term swing trade too.
Yesterday I bought DOCU . Even a run from $200 to $300 is a nice gain.
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YESTERDAYS REPORT: Notice that SQ recovered the 34 sma during the Monday Market sell off. It is a buy for that reason or when it breaks the downtrend line.
Tuesday SQ it did break that downtrend. Since it was only up 3%, I think that it is still a buy.
TSEM also broke the downtrend that I pointed out. It is still a buy, especially if the General Markets confirm a dcl.
RETAIL IS INTERESTING, SINCE MANY ARE STILL DOING WELL DESPITE COVID AS THEY TURN TO ONLINE SHOPPING
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LAST WEEK & YESTERDAY I POSTED ETSY – I had this in the reports last week, since staying home due to Covid does not prevent inline shopping and ETSY almost tripled since the March crash. Well as you can see, ETSY did not follow Mondays sell down. It is still a buy and we’ll see if it can then regain the 50sma , making this a shake out.
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ETSY ON TUESDAY moved above the 50 sma now and it looks ready to break a down trend line. In the above chart, I actually used the 34 sma and here I used the 50 sma. If ETSY breaks that downtrend line, that 34 sma will be recovered too. This is still a buy.
I watched BBBY break out yesterday, so this sector is coming alive right now. So that means that..
So that means that LULULEMON and UNDER ARMOUR ( UA) may perk up. This sold off sharply, but it still can be bought with a stop.
BBY – I looked up BBBY and accidentally typed in BBY and it also is a bullish set up. This is a buy.
SNAP – a Cup formation is a bullish consolidation, and they dont always put in a handle. This cup is a buy and I’ll show you why…
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That cup in SNAP is a buy and I’ll show you why: Notice the cup that formed on this chart of CAMT in June/July. It just ran away from the cup after leaving that consolidation. No handle formed.
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CAMT can also be considered a buy as it breaks from the recent consolidation. Notice that it didn’t crash down with the General Market sell off, it just meandered over to the 50 sma.
There were many trades in yesterdays report too. You can review the end of yesterdays report for more ideas.
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SIDENOTE BY REQUEST:
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I’ve been watching WKHS tag the 8 ema all the way up, so I started day trading the charts. WKHS will actually move up $3 or $4 in 2 days, and then it would drop to the 8 ema, so I would scalp some gains on the rise and re-buy the drop reversal.
WKHS did not give me a reversal , so I didn’t buy it back for now. This is why I only have 250 shares. It held the 10sma, so it is fine, but as a trader I follow intraday charts too. So I sold my SPAQ ( for now) and decided to buy DOCU, ETSY , SQ as new trades that may be coming off of the sell off lows. It is all a part of my trading style –it does NOT mean that there is something wrong with SPAQ or WKHS- these trades have been great trades. I am a short term trader, a swing trader, and a buy & Hold after an ICL trader too.
I have mentioned this before, but it’s worth saying again. It is all a part of my trading style for my personal accounts. It does NOT mean that there is something wrong with SPAQ or WKHS- I’m sure other traders here have their stops in place on the way up to lock in gains if these break downside parameters too. I often trade midday using intraday charts, this is my day job and I do this for a living with certain stocks that rise and fall enough.
Sometimes I exit a stock & it just keeps running higher. Look at NVAX. I traded that from $8 to $15 or so, and it ran up to $190! WOW. I either find a way back in & scalp some more of the move or go elsewhere, but again, my selling a good run does not mean the stock went bad. For most of my readers, Swing trades are the best way for them to make money, buying & holding as the stocks climb higher over time ( and maybe selling some on the way up to lock in profits).
For those working full time and those away from the screens like I used to be, you really have no choice but to buy & hold for a week or 2 or even more with a stop. This is especially profitable after a dcl forms low risk entries. I think that the best thing for all to do is learn to enter a low risk trade and then trade according to their own style and time frame. As long as a stock isn’t breaking down, they can ride the run up and some choose to ignore the choppiness or ‘wiggles’. All bull stocks do chop around, many here have learned that over time. NVAX was one of the hardest rides around, but it ran up Big Time too. Many of the stocks like ETSY, AMD, DOCU, etc were also choppy and sideways at times and that is not always easy to hold over time, but the bull markets helped the gains to keep on coming. I like to Buy a DCL and see what we get. Now we’ll see if our General Markets put in a dcl & continue a blow off top, or have we seen a top forming now? Time will tell. Enjoy your midweek trading!
