November Friday The 13th – Still Waiting
No, I am not superstitious, so this will probably be a nice day of trading. 🙂 Well, today is the last day of the trading week and we are still waiting for that real clear reversal in the Precious Metals. Let’s get to the charts…
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SPX – This looks like day 35 and the General Markets can have daily cycles that are 50 days long so the dip here may still just be a pause or small handle on this larger consolidation.
WTIC – oil also looks like a little back test or pause.
XOP – This is where oil / Energy gets interesting. It has tagged the 200 sma and dipped back to the 50 sma. On day 9 it still has time to break out, even if it consolidates first. I have drawn a possible bullish or bearish path.
So with GOLD are we seeing…
1. A bear flag? or
2. A similar bottoming chop to what we saw in Septembers low?
3. A bear flag could drop to the 200sma as an ICL, but if the recent lows aren’t broken, this would be a first DCL
SILVER is interesting. It climbed up the 34 sma and then lost it with that Sharp Sept drop, which looked like an ICL. Now it is popping above and below that line. A drop to the 3rd green arrow would be a clear ICL. PICTURE THAT THIRD DROP AND THEN LOOK AT THE NEXT CHART.
GDX already had that 3rd drop and that is why I have been leaning toward the idea that Miners may resist the sell off if we get a quick sharp drop. We could be seeing a higher low, but really only time will tell. Basically Miners remain choppy.
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I also pointed out yesterday that we had a series of lower lows and lower highs, until that false break out. That did give us a higher high, and now a higher low for Miners could indicate that they Do have their ICL.
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ELYGF – I’ve been wanting to add to this position with ELYGF Squeezing between the at the 200sma, so I posted this as I added and it reversed higher. It then closed back at the 200sma. I’m ok with that, but this shows that the chop does continue.
I was also using this chart to show that EXK, HL, CDE, AG , and a few others were rising above the 50sma. By the close they sold off to their days lows and now 2 were under the 50sma and 2 remained above it. Again this shows that Miners remained choppy.
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Basically Miners remain choppy and in yesterdays report I mentioned that it is as though that Break out never happened, we are just chopping sideways waiting for things to resolve one way or the other.
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This is a live chart of Gold as of 6:30 Eastern Time. We still have that small box like formation at the lows and no clue as to whether it will break higher or lower, so I mentioned that we should treat this situation as though that false break out never happened and we are just waiting for an ICL to show up. It was either September and we are waiting for this to form as the dcl, or we do a quick drop & recover as the ICL in November.
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As mentioned, The Miners may have their 3rd low / ICL in place. Enjoy your Friday trading!
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~ALEX
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EV, LITHIUM, CLEAN ENERGY, etc may continue to do well with a Biden administration in the US, so I posted a few trade set ups and I want to show you just a little more of this sector. It also included some acquisition companies, since they were acquiring or merging with EV Companies.
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I pointed out and bought the long consolidation set up in SOLO, and after a nice move out of the base and a pull back to the 10sma, it popped 30% yesterday.
XPEV was an IPO Base mentioned by me long ago, but I never offered as ‘buy’ when I wanted to buy it. Now it has ripped out of that base and yesterday alone was up 35% at one point. It just ran from $19 to $48! THIS IS NO LONGER A BUY, it is risking a strong pull back, I’m just pointing out the strength of this sector.
LI – Another 27% pop after a run & consolidation, so I have been really liking this sector from back when we bought SPAQ & WKHS as 2 nice bullish set ups .
BLNK has been highlighted by me too, and I own it. They released earnings yesterday Pre-Market and it rallied all morning. It then sold off and unfortunately on a day that was great for EV, this Battery Charging Station company ended up down in after hrs. Overall I think it will be fine & the earnings sounded good, but it sold off for now so it may revisit that 50sma? I may add if it reverses higher there.
FSR (Used to be SPAQ) – I made really good gains on this one as it formed that cup. We entered in the $12 – $13 area and rode it toward $20. I got stopped out as it broke the uptrend and now it sold off hard during a merger. This company should do well, and suddenly it has V-Bottomed. I do not own it, but may buy it if it dips. This could run straight back up to the highs under current conditions. Put it on your watchlist? It is on mine. It just ran ‘roughly’ $8 -$16
NETE now does EV Cars too. It is on my list as it was pinched between the 200 & 50sma and I bought it quickly as soon as it broke toward the 50sma while I was watching this sector rocket higher yesterdays ( the activity with SOLO, XPEV, etc). Am I early? I could be, but I have a stop in place since I have them scheduled to release earnings Nov 16 (unconfirmed).
WKHS – Buy again? We bought this in that sideways consolidation in August and rode it toward $30 ( I sold a bit early, selling on the way up like I often do). It sold off all the way back to where we entered and looks like it may run back to $30 under current bullish conditions. I did not rebuy yet since I was waiting for an ICL in Miners, but I May enter this trade.
IPOB is also on my list as it found support at the 50sma. I do not own it yet, but I’m watching it so I thought that I would mention it.
I just wanted to mention that with Bitcoin up over $16,000, you can see that RIOT and MARA are no longer following BITCOIN. This DOES remain bullishly set up, but if you own it just know that it is not in sync with Bitcoin anymore.
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RECENT TRADES THAT POPPED:
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WWR is Lithium & Uranium and it was a trade that started to pop after releasing earnings in the morning, but it sold off at the end of the day. Odd. At the 50sma, it is in danger of dropping and stopping me out ( I sold 1/2 yesterday & held 1/2).
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SOLO popped 30% and held the gains in after hrs.
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CLNE popped almost 20% too (Clean energy). CLNE held the gains into after hrs.
BIOC also popped 25% after pre-market earnings and looked ready to run after releasing those positive earnings. It was up all day and then sold off in after hrs? Day traders cashing in? Owners cashing in? It’s hard to say, but lately it has been common that if you don’t sell at least some on the way up, you end up watching the gains pile up & then evaporate.
