Tuesday October 6th – Set Ups
The point of todays report is to quickly show that the Markets are acting as expected, and then to point out some more bullish stock picks. Over the past couple of weeks we have discussed and taken trades that are paying off nicely, so I want to point out a few more set ups.
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The SPX dropped Friday on the news of Trump & Covid, but it was supported by the 10 sma. Monday the General Markets shot up higher on day 7 and many of the bullish set ups continued higher too.
LABU – So with Bullish markets we discussed trades long such as TQQQ, SOXL, SPXU. Well Biotech is bullish too, and LABU was up 15% Monday. This sector may be more bullish with the recent increase in Covid cases.
WTIC – Oil has been tough. We had fairly big drops and then on Monday we got a big Pop higher. I’m just watching it for now, but a break above the 50sma should be bullish. What about Oil Stocks?
XOP – This swing low looks like a dcl and the MACD flat lined as Price dropped, but it needs follow through. We had a reversal and push higher in early September that died when oil struggled at the 50sma.
GOLD is moving higher out of a dcl, but overhead resistance should cause a pause if this is going to become a final dily cycle that drops into an ICL.
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SILVER over the 10sma on Day 7.
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GDX closed above the 10 sma again and this is day 7 of a new daily cycle. I have draw what we could see if this just gets choppy like the last daily cycle and then eventually rolls over into an ICL.
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Below I want to show how some of our recent picks are playing out. Many are finding bullish follow through and that can give us confidence on some other newer set ups. Enjoy your Tuesday Trading.
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~ ALEX
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I will review a few recent set ups to show how they are acting, and then offer some new ideas. It can be overwhelming to see 10 new trade set ups, but just remember that you aren’t expected to buy them all. You CAN choose 1 or 2 from a sector that you like or pick one from a set up that you favor. Is it at support? Is it breaking a downtrend? Has it bounced, pulled back, and put in a higher low in a sector that you like to trade ( Tech, Covid, etc). You will have choices below.
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BBBY – Retail has done very well, especially if they offer online shopping like AMXZN, BBBY, AMZN, etc. This break out was a buy set up when it reversed off of the 50 sma at $11 ( purple arrow) and it was also a Buy as it broke out at $13.
BBBY hit $22 Tuesday. Some retail is strong.
ETSY– I have the same advice for ETSY, it can run straight up as we have seen it do on June & July.
I also mentioned GPS (gap) as a buy and it is breaking from a cup to new highs, so…
BBY (Best Buy) was posted as a buy at the 50 sma & as it broke out too. It should at least from a cup.
BBY is forming that cup. Usually this forms a cup and handle, or it just breaks out & runs, so I would continue to hold it. So the retail stocks are doing well.
We have also been riding Solar Stocks that had bullish set ups. SPWR, CSIQ, ENPH, JKS, VSLR, RUN, and many more are still alive and running. In fact:
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SPWR has been running higher for 8 days in a row, so I started wondering where I should lock in gains? Is this overbought? I knew that we saw strong runs in RUN and JKS too, so would those charts help e to know where to sell? …
JKS : This chart certainly does NOT help me to know when to sell the strong runs in Solars. SPWR or CSIQ. As you can see, JKS, VSLR and RUN have been having an amazing straight up run. All you can do here is either scalp some gains on the way up, Sell some & let the rest run, or use a trailing stop ( 8 ema? 9 or 10 sma? 13 sma? etc) to catch the upside and hope that we don’t get a gap down one day.
So we are seeing plenty of these bullish set ups moving higher. Lets take a look at a few more valid trade set ups .
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Recently I pointed out Covid trade set ups BNTX, NVAX, MRNA.
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BNTX was a buy here at $66 and I said that a run to form a ‘cup’ is almost a 100% gain. I mentioned that I own it.
BNTX was pointed out again here below $70 as it headed for the 50sma. Add here or add on a break out above the 50sma. You could also start a position since it was acting correctly and I mentioned that I still owned BNTX.
BNTX broke that 50sma last week & has been moving higher ( I still own it). It can form a cup and that would be a price around $100. IF IT DIPS, YOU MAY STILL WANT TO BUY IT OR ADD TO POSITION. Now let me show you NVAX…
NVAX did not run higher like BNTX yet, but is still set up to do so. NVAX can be considered a buy like BNTX was.
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NVAX has stalled, crawling along the underside of the 34 perfectly. I call this a buy right here, but you could also wait for it to break higher & buy. A run from here ( $100- $110) to the highs is almost 100%, so a break to new high could be a 100% move. Even a small position on a 100% move is rewarding.
MRNA has also stalled and chopped sideways for a few weeks, but the set up still looks healthy here too. They are working on a vaccine and have made good progress. $70 to $100 if it breaks higher & runs to July Highs.
X is a steel stock that Popped from a consolidation & above the 50 sma. I mentioned it in the live trading area and said that it looks to be catching up to what CLF has done, so lets look at CLF (this is a buy) ..
CLF popped from its consolidation last week, above the 50sma and is already breaking to new highs.
COPPER STOCKS have been mentioned in past reports as trending ( Choppily) Higher. Charts of HBM, TGB, and FCX look very very similar right now. They dropped to the 50 sma to oversold conditions & have reversed as a buy.
** OPTT – I Bought this yesterday when I saw this set up. It has high surges of volume, is trending higher and looks like a decent ‘Swing Trade’. What I also liked about OPTT is…
I REALLY LIKED THIS OPTT WEEKLY CHART– This has just moved higher above the 10 week MA and the upside potential looks very good for a swing trade. Low risk / High reward.
BLDP is an Energy Stocks that has done very well in the past. I bought it in September and when it didn’t run toward the prior highs as expected, I sold it. AT THIS TIME it does look ready to run higher. BLDP broke a down trend, the 50 sma, and has other bullish features.
BWEN is another (Clean) Energy Stock that has now broken the downtrend too. In the past it has been a bit choppy but also it has made strong gains. I think that it is a buy, because this sector is doing very well.
BWEN – This is a close up and it shows that BWEN does have resistance with the 50 sma above it, but it can get through that over time.
I mentioned that I bought CEMI last Friday when they got an FDA approval and it popped 4% with good volume. Yesterday it popped another 14.77% and I’m holding to see if it will at least fill that overhead gap.
PLG & PLM Looked like BUYS yesterday, and I pointed them out in the live area. This is a bullish set up.
Yesterday those medical marijuana stocks started to pop. Take a look at chart of APHA, TLRY, CGC, CRON, and the ETF MJ. This sector may be ready to run now too.
Several of our former low priced COVID STOCK TREATMENT companies look to be setting up bullishly again. A few of those chart that now seem to have bottomed out & formed a higher low above the 10sma are BIOC , CHFS, BNGO, RGLS, HTBX, etc. They are on my watch list.
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I bought a start position in BIOC yesterday, but I may be a bit early. This was midday and I liked the volume coming in, and…
This is a chart of BIOC showing the potential. They did a reverse split so now a run to former highs would move from this $4 area to $12. I am NIT saying that this will happen, I started a position because I liked the volume at the time, but it didnt follow through higher yet. If I am early and this dosn’t start moving, I will sell & put it back on the watch list.
INPX also looks constructive.
ADTX: This has been forming a nice base. I actually had this on my watch list and I liked the intra-day charts set up yesterday, so I started a position . I may be early, but you can add this ticker to your watch list if you are interested in seeing whether it gets follow through or not.
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EDIT 7 a.m. WWR closed at $8.28 and I saw it at $17 early in premarket trading! Wow! It is currently just over $12…
6 a.m. EDIT: WWR was bought when it was around $1.35. It hit $9 yesterday and actually hit $17 IN PRE-MARKET When I woke up this morning!!! The Robin hood crowd no doubt. WWR is now dropping again in premarket . I have been trading this one on the way higher, but I am down to half of my original position now. These kinds of moves are not sustainable, so I sell some on the way higher using intraday charts and trade it or just let some ride with trailing mental stops too.
