Wednesday Dec 16 – Hold On!
Yesterday I was mentioning that many sectors are bullishly set up and look like they are offering excellent trading opportunities and maybe even the Miners would be joining in! Well I think that Tuesday move in both Gold & Silver were a step in the right direction and we could see some follow through. Some of those Miners, especially the Silver Stocks, are looking good again too (some looked Very Good) and the hope is that they’ll all follow the leaders. I’ll discuss that later in the report.
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THE SPX dipped to the 20sma and reversed higher just like the NASDQ did Monday. It is very possible that we are entering a blow off phase and this is all we get for a dip right now. Price cut under the 10sma and regained it. That could be a very mild dcl.
WTIC – Oil is on day 30 and still climbing. Oils daily cycles can last 50+ days. Oil stocks flipped higher again, so it is possible that they will keep following Oil higher or they may just get choppy.
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I posted this chart yesterday of THE XOP & drew in a possible corrective path. It closed at the 8 ema without a bounce, but then I noticed that it also did that 2 weeks ago & recovered. Oil stocks could recover again since Oil is still moving higher. We also may just chop sideways, it is hard to tell at this point. Using a trailing stop can help the buy & hold crowd stay invested.
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This is encouraging as a higher low: GOLD DAY 11 popped on Tuesday and as you can see, it may prove itself here. It has been trapped under the 50sm and a break above that will give us further confirmation of an ICL being in place for November as I have been saying (and not just another dcl). We are looking for confirmation and the MACD & RSI Look bullish. Hopefully we get that break out above the 50sma sooner than later. We would then be above this channel too.
Yesterday I said about Silver…
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SILVER honestly doesn’t look weak to me at all, it just looks sideways and choppy at this point. Since we are at the Apex of what I am viewing as a triangle, I would expect a move higher as soon as this week. The MACD & RSI here are encouraging too.
SILVER did pop and is very close to a break out. Silvers is above the 50sma and next is a break out above the downtrend line. I think Silver stocks look very good and have mentioned that I also think that Silvers & Silver stocks will outperform Gold this time around. The ones that I own (CDE, EXK, HL ) were all up over 10% at one point Tuesday.
GDX was a bit lack luster, but some of the Silver stocks moved 10%, so Gold stocks may be ready to play catch up too. I will discuss that below.
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EDIT: THIS IS SILVER AS OF 6 A.M. and this is what I was looking for. This is another point of confirmation that this sector is about to rally and the ICL for Gold was in November. Silver stocks should have another good day and maybe the Gold stocks will follow. I’ll discuss more below.
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Enjoy your Wednesday trading!
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~ALEX
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I mentioned a few times that I liked the daily and weekly set ups on CDE and EXK . I also mentioned that I bought them. CDE is already at the 2020 highs and popped another 10% with volume yesterday. This looks ready to break out and I would add on dips if we get any. This looks ready to break out & run actually.
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I posted this CDE WEEKLY CHART last week to show CDE as Bullish
This EXK WEEKLY CHART was also posted last week and it was a low risk entry spot.
EXK DAILY -Tuesday morning I posted in the live trading area under the report that EXK gapped above the 50sma and I added to my position. It also closed up 10%, so you can see that some of these Silver stocks are performing well. ( This is still a buy, especially if it dips).
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HL – I also mentioned HL as it moved above the 50sma, and grabbed this chart at 10 a.m. saying that it had 2 million in volume in just the first 1/2 hr of trading. THAT is a Buy.
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HL closed with 9 million and is breaking that downtrend line that I drew in the ABOVE chart. This is a buy and you can use a stop under the red trend line.
AG has been trading choppy and sideways but it also remains above the 50sma. This is a lower risk buy too.
With a long choppy sideways consolidation, PAAS and many other Miners look very similar to CDE, EXK, and HL before they ran higher. If Silver is going to break out & run, these should all do very well.
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AXU, GPL, SSRM, MAG, etc – I would start looking for the ones bullishly set up yet lagging a bit too. Look at AXU here as it pushes on the 50sma and the MACD curled up. You can buy the as low risk set ups with a tight-ish stop under recent lows, or buy them as they break out.
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You also want to Look at your list of Gold Stocks. Those were a buy at the ICL and now you can add if we are going to break out higher. They may look something like this example of AUY, and I will cover more of these in upcoming reports.
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AUY moved off of the lows and as I labeled that low a dcl, and likely an ICL for Gold in November. Many were buying near those lows at the dcl. Now we should have a higher low and a reversal. These Gold stocks ought to break out like some of those silver stocks have, So when I see a set up like this…
AUY – So when I see a set up like this, this is how it looks in my head. I add to my position if it breaks out above that 50sma and you can continue to build your positions as your confidence grows. Confidence grows as we see confirmation unfold in the price action.
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THIS WAS MY CHART OF BITCOIN: After the typical double bottom low was in place, I asked: Would it roll over or break out? It could go either way, but it actually now looks ready to break out and the blockchain stocks look to be running ahead of it.
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MARA was up 27% yesterday, HVBTF was up 22% again, and RIOT added another 11% too. These may be a bit extended for many to ‘comfortably ‘ buy, but…
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MGI runs in the same sector and was up 12%, but it also looks oversold and set up with a nice risk / reward ratio. I bought the reversal and this remains a buy as Bitcoin Looks ready to break higher.
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MGI– I accidentally grabbed 2 charts of MGI 🙂 But again, it reversed right at the 50sma support and is oversold.
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Take a look at the Energy Sector that we were trading in November. MANY of those stocks look to have ‘reset’ and may be ready to go again. Take a look at charts of Stocks like OPTT, PPSI, IPWR, POLA, SOLO, EOG, etc etc . They look quite bullish.
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In November SOLO was one of the EV trades that I (we) rode up over 100-300%. It may have reset in this pull back to the 34 sma where it has now reversed. It is a low risk buy, since a stop can be placed right under support. I show it here running back to $13, yet…
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SOLO – I do want to point out that any of these could rally just as quickly as the first run, but they also MIGHT do a bit more of a gradual climb. Either way, it can be gains of more than 100% if it rallies back to former highs.
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OPTT was in yesterdays report and even though it popped another 10% Tuesday, you can see how much further it can still go if it runs like it has in prior runs. It remains very oversold.
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OEG ran from $0.75 to $2.20 in November alone and now has also reset at the 34 sma. It is oversold and can be bought with a stop at recent lows. Upside potential is big.
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Yesterday I posted charts of PZZA, RKT, MAXN, IPOC, NETE , etc as buy set ups. They are still valid: so we have a LOT Of trades on our plate!
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PZZA has continued higher but since it is moving slowly it is still a buy & hold type of a set up.
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