Friday December 11th
YESTERDAY WITH THE SPX & NASDAQ – I discussed how In the past we would get quick drops to the 13 sma as shown here and we are there now. That MIGHT be all that we get, but with the Put Call Ratio overdone and Sentiment so extreme, we also could get that drop to the 34 sma / Green line as a dcl.
So far The SPX reversed at minor support here. I think that we will still get more selling soon, since a dcl is due and the PUT/CALL RAtio and sentiment are still near topping levels.
WTIC Popped and this was expected since it went sideways to support and remained bullish when the markets sold down on Tuesday. Oil stocks really popped, several of them up another 23%…
LPI up 15% , others were up 10 – 23% . This run has been great and this was posted as a possible ‘lagger’ during the sideways move near $10-$11. LPI has now moved 100% since that recommended buy point.
GOLD – We saw no real change with Gold, Silver, Or the Miners on Thursday.
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GDX YESTERDAY: It reversed on Monday at the 34 sma and has also dropped to the 10sma as of Wednesday.
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GDX gave us no change here on Thursday. Most miners were up or down 1-3%, but there were a couple that performed well.
CDE was one of those that still looks more Bullish up 6% at one point and near the highs.
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Today is Friday, the last day of the week. I think that we could see some more selling in the General Markets, so we should be aware of that possibility either today or even next week. Along with that cautionary note, I will still include a few trade ideas below.
Enjoy your Friday trading!
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~ALEX
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DON’T FORGET TGB was a buy and it is still a bullish set up here. A stop can be placed under the 50sma and trend line and I think that this is a good low risk trade that offers good upside reward.
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PLM WEDNESDAY -I was asked on Thursday morning if PLM was still ok after the drop. I grabbed this chart and his was the drop. I said that it is ok. It is on support above the 50sma. And…
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PLM then moved 5% higher and it is still a buy if you ask me. It is acting correctly.
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OBSV – With a chart like this we are looking at a nice steady base and price is above the moving averages with a strengthening MACD & RSI. The downside risk is minimal and upside potential is very good. Is it ready to go right now? It looks ready, but I cannot be sure, so by starting a position here in the base ( or putting it on a watchlist) I will be alert to any upside break out and I can then start or add to that position. Monday & Thursdays pop are bullish.
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ADTX – This is very much like the base above. The problem is that I mentioned ADTX a few weeks ago and it popped and continued to base out (so I sold it). It popped 17% yesterday. Is it ready now? We’ll see, but what happens is often a pop will turn into a trend higher and so ADTX can go on your watch list.
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NETE was a buy on Nov 6 with this base and a Pop and a back test near $7 …
NETE ran higher and doubled at $14, then it started to consolidate. I pointed it out here this week as an oppotunity to enter on support again with a possibility to run from $10 to $20
NETE popped yesterday into the close and ran up 23% to $14. I still think that it has the potential to run to former highs of $20 (or more).
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PVAC – So many Oil stocks are up 100% and they are very bullish coming out of the lows, so I pointed out LPI as a lagger and it has now doubled. PVAC could easily double from here too, if it starts to rally. I think it is low risk entry with this trend line and price above both the 50 & 200sma.
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TRIB is a Biotech stock that I have traded, but I missed this November rally. It has now formed a pennant and that could be a nice short term trade. It would have a price target well above $6.
WWR reversed off of the 34 sma and might be ready to move higher again. We bought this in September and were able to catch that massive rally and sell it on the way up. Now we have a consolidation & Base and it ran from $4to almost $8 again. I’d like to catch the next move higher too, and this may be the next support level. It can be bought with a stop at the 34 sma, or allow it to prove itself and buy a break above the 10sma.
I want to discuss the PLG Trade:
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I sold my PLG just above $5.00 2 days ago. I was up over 100% , and I was hoping for the pull back to re-enter. So far PLG is still just climbing higher and it is up another 6 % in after hrs now $5.50 as of Thursday night. Will I be able to get back in? It does look extended and I expected a pull back, so let me show you an idea of what I was hoping for…
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As an example: XPEV Bull Flags – This is an example of a strong bullish climb and it was an AMAZING RUN. Recently I sold my PLG on the way higher just above $5 and was hoping for this kind of price action to re-enter. We may or may not see this kind of climb. We also could get what we saw with WWR after the October run. It is now a wait and see game, but there is always another trade too 🙂 Eventually I do think that I will find my way back into PLG for the longer term.
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PZZA is a buy as it forms a cup here
