Wednesday December 9th
THE SPX was down on Tuesday again, but then it closed higher, so nothing has changed here. I am seeing signs for a pull back, but the Buy The Dips crowd seems to be doing just that. It is starting to resemble the melt up that took place right before the September drop.
WTIC – Oil remains bullish and all of the dips to the 10sma have acted as support where buyers step in. It is day 25 and that is usually roughly 1/2 way through a daily cycle. This should become a right translated daily cycle out of an ICL.
THE USD – This is hard to read lately. The USD sold off sharply in November, but Gold didn’t rally sharply higher. Now we have a small bounce for 3 days and Gold has a couple of green days at the same time. Tricky. I would say that the USD is very oversold & is also due for a dcl and a good bounce, but as long as it remains unable to get above that 10sma, it is trending lower.
GOLD moved higher on Tuesday (with the USD moving higher too). This is only day 6 so Gold should have plenty of upside. Gold pushed higher and broke that downtrend line, but Miners stalled.
GDX has pushed out of the lows, broke above the 10sma, and then dropped back down to test it. Monday saw a nice strong move off of that 10sma and Tuesday gave us a chance to add to Miners. This is day 9.
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At this point nothing has really changed in any of the sectors that we cover. Trading is still good and the only so called event for Wednesday is the Oil Inventory Report. I have had several new trades in recent reports and several former swing trades that are still working out, so I am only adding a few new ones below. Enjoy your Wednesday trading!
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~ALEX
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SHOP – Shopify ran from $300 to $1000 from March to July! It has now been chopping from $800 to $1000 since June. A break from a consolidation like this can lead to another solid run higher, so you may want this on your watch list (Buy the break out).
AIKI – William actually mentioned AIKI in the live area, so I looked it up and like it a lot. The first thing that I saw was volume swelling as it leaves a nice base. Aside from any bad news or a public offering or some other negative event, this looks like it wants to run to former highs. That is a 100% move so I’d call this a buy.
IN NOVEMBER NETE was a buy for us when it also formed this nice base. I used this chart in November when I bought it as a buy. Compare this chart to the one above( AIKI) . They are almost twins right? Did Nete keep going?
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NETE exploded higher since the sector was on fire, so this could also happen to AIKI. Aside from that NETE also looks like a buy again here and you can see that it can do a quick trip $10 to $20off of the 20sma.
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In November I said that DVAX was a Covid stock that was Popping from a base. It was a buy. Well…
DVAX – Rallied higher and then dipped down to back test the 20sma. I hate the ‘$4 to $6 and back again’ too, but this does look like a Buy here again. It may be choppy as it forms a giant cup out of this base. I still like DVAX, CHFS, RGLS, BIOC, HTBX, and a few others as Covid play candidates.
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BCRX – This is a Biotech Stock that I’ve traded in the past and THIS is a good example of why I like the rounding bottom bases or long flat bases. This could be what becomes of DVAX, AIKI, CHFS, BIOC, NOVN, etc. They may be choppy now but when they go they can fly ( like TRIB, RGLS, TRXC, etc are doing right now).
Many that have been here for a while remember RGLS, BIOC, CHFS, HTBX, NOVN, etc as former high %-Gainer covid stocks for us in early 2020: Recently You may have heard me keep mentioning RGLS in the Live section. This is why.
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RGLS: I had a bid in for this triangle base set up and it missed picking me up. I didn’t want to chase it on that POP break out so I waited for a dip & missed it again. It is now up 100%. I missed it, but this is why I am hoping that AIKI, CHFS, NOVN, or another still in the base will follow through like RGLS, TRXC, etc.
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WE HAD SOME NICE SET UPS IN YESTERDAYS REPORT TOO, LIKE PLM, TGB, SOLO, ETC., SO BE SURE TO START A CHECK LIST AND CHECK IT OFTEN :
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PLM has been doing fine, but I just wanted to say that I still think that this is a buy. IF it pulls back to the support area, it is a stronger buy, but this may just break out & run from here too.
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TGB is still a good buy set up right here on top of the downtrend line.
