Tuesday May 23rd – More Trade Ideas
Not much changed on Monday, so a short review will suffice and I’d like to add a few more trade ideas. Trade ideas these days are best entertained with a shorter time period in mind and also with a rising stop, because with the debt ceiling discussions and other road hazards out there – you just never know when a reversal could come about. So far the General Markets are at 2023 highs. We also have the release of the Fed minutes Wednesday, so we’ll keep that in mind. The SPX went sideways, The Nasdaq continued higher and made a slightly new high, and…
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THE IWM, which has been basing out or lingering at the lows, is starting to join the others and break higher. You can see a downtrend break out and some upside follow through as the MACD rises. We are starting to see this in some of the lagging sectors too, like EV, Clean Energy, Solars, etc. I’ll add some charts at the end of the report to show you how they reflect the IWM.
WTIC – Oil made no real changes on Monday, but the breakout of the downtrend is a good start and now the 20sma resistance needs to be broken to the upside. The XOP actually broke above the 50sma …
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The XOP actually broke above the 50sma and is starting to look better as that ‘Higher low buy point’. The 2x leveraged trade on this is GUSH, but it has been choppy in the recent past. I’ve traded it and it never really started running, but it could.
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If you want to check some charts, I ran through some charts and NOG, ERF, MRO look good in the Oil Stock area, but they have been choppy as seen here. CPE, WTI, and a few others seem to be bottoming after selling down.
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USD I expect the USD to move a little higher and this will push Gold a little lower.
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GOLD Paused on Monday, but should be dropping into a dcl / ICL over time.
GOLD should have a day 36 dcl and now we’d be on day 24 with a peak on day 10.
Here I am just pointing out where we appear to be when compared to that long dragged out drop for GDX in February March. I’m showing roughly where we seem to be in comparison. It is not likely that these 2 drops will be exactly the same, but they may be similar, so this is just a visual guide toward the 200 sma (not a true prediction of price action).
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As mentioned in a recent report, the Precious metals are affected negatively by the USD rise, but the General Markets have been ignoring it and running higher. Some sectors or Indexes (SPX, NASDAQ, etc) are leading the way to new highs, others like Biotech (LABU) and Small Caps (including Clean Energy, EV, etc) appear to be breaking out of bases and playing catch up. Below I’m just going to post some trade set ups. I am seeing a lot of nice trades play out, with some that are just ramping up while others may be just a little bit choppy before they push higher, so keep that in mind. I Obviously do not take all of these trades, I may take 1 or 2 here and there. I’ll discuss them on an individual basis. Enjoy your Tuesday trading.
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~ALEX
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I discussed trades like RKLB, CLOV, VXRT, and more lately, so a quick review to show how they play out and then some new picks.
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In early May I was discussing VXRT. It was running strong and moved right above that 50sma, formed a bull flag to the 10sma after earnings, and then Popped 16% on May 10th. Volume was big and this had been running strong. Then…
VXRT got a little extended, so after a short 2 day pause, it then popped 30%. This was running big. That was followed by a reversal and I recommended watching it for a pull back to get an entry if one presents itself. Fast forward a few days later and where is VXRT now?
VXRT has actually been crawling sideways under the 200sma, so it may be pausing temporarily here , to build energy for a break out and then run again. It helps to take a quick look at the big picture as well as the small picture for clues, and that is what I am doing here now. This could be a buy on the breakout or further sideways chop to the 10sma.
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RKLB : Recently this was breaking out above the 50sma from a base. The key is that I saw high volume push higher post- earnings. That usually means that Price should continue to rise higher (so look for that in other trade set ups)
RKLB popped another 6% yesterday as it now took on and broke above the 200sma. So far so good.
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CLOV was recently in my picks as a buy post-earnings too. It is running higher after releasing earnings 9 days ago, and seems to be reversing after a quick dip to the 9sma.
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CANO #1 – This one caught my eye when it popped 25% above the downtrend line post earnings almost 2 weeks ago. It also has a lone soldier abandoned baby if you look closely. It has chopped sideways and then popped 13% again yesterday, so this is acting correctly after the earnings release. Take a look at the current set up and then let me show you something else….
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CANO #2 –Take a look at the base. Even if this just ran to fill the gap it would be a 100% gainer, but again, it is choppy and it is hard to say if it is ready to start running higher right now or soon?
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MBIO ran to the 50sma and has been crawling bullishly along it. It is now pinched between the 34 & 50sma and a breakout should cause an upside run, so you can but here (?) or put this on the watch list. 1 difference on this one is that it tagged the 50sma when it released earnings and has crawled lower. Some of the others were breaking the 50sma after earnings.
SENS was mentioned recently as a 23% POP after releasing earnings. I said that I put these on a watchlist to see if they pull back to support. It slowly chopped lower and seems to be reversing at that 20sma. This also back tests the base and can be bought with a stop as a trade idea hoping for follow through to start.
I (we) used to trade TWST in 2020. It actually ran from $20 to $200 during covid, but sold off since then.
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TWST posted earnings 2 weeks ago and is basing out, but it did Pop 15% yesterday, so it may start to round off and form a round bottom base.
I have a few watchlists of literally over 100 biotech/ pharma companies that performed well during the covid days. I use my list to watch for signs of life as they Pop or I see high volume surging in and then I look up the company to see when they have earnings, why might they may be popping (good news? Testing results? FDA Approval? etc). And if the chart is bullish, I may trade it. That is how I found these yesterday, so I keep a watch list of many sectors as they die and come back to life and I then run through the charts in the bullish sectors when those sectors become bullish again.
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HUYA (China company involved in live game streaming) – This sector has been coming back to life too and HUYA popped last week and yesterday with strong volume. It appeared to be bottoming so I looked at a 7 month chart and noticed the round bottom possibility. A stock like this may be choppy, but forming the right side of a cup can gain profit over time. Earnings came out last week.
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I was watching the EV, Clean Energy watch lists and saw many popping yesterday too, so I wrote this. Usually if I write this it means that I am currently looking at these charts and may be busy doing so (but I mention it so that you can check them out too).
So as an example, this was PLUG. This one actually released earnings and dropped on that high volume down day. The sector all seemed to push higher yesterday, but I didn’t do any buying at this point. A tag of the 50sma may cause a dip to a higher low (or a crawl) and THAT may become a buy set up to me.
I have actually been watching this company for a while.
RUM has been crawling along the 200sma for a while as a resistance point. Recently it seems to be starting to form a triangle and I think that a break higher could cause a nice rally.
The entire MJ Sector started to Pop again. SNDL, CGC, TLRY, GRWG, etc Popped so I posted this an hour into trading. This does look to be a higher low out of a base. That low is a back test of the 50sma. SNDL & GRWG do look good in this sector and TLRY is similar, but this sector has many false starts, so I am personally just going to allow this sector to work through the basing process. I’ll be checking it often though for signs of stability.
RIOT, MARA, BTBT, HUT, etc actually closed up ( Riot up 10% ) with Bitcoin red. These may be predicting a push higher in Bitcoin.
MARA closed up 5.4% too. The 50 is about to cross above the 200sma as they begin to pinch together. The set ups are all bullish, but bitcoin is stagnant, so it makes it tough to fully load up and trust things. I’m watching to see what BITCOIN does out of the recent low.
