Wednesday October 11th – Follow Through
.
THE SPX had a little pop and drop on what should be day 5 of a new daily cycle. We also should have an ICL in place, the only cautionary note was the low daily cycle count, but it did cross the 10 sma with vigor. With the pop & drop we may get a pause or drop to the 10sma, we’ll see.
.
WTIC – Oil usually has 45+ day ‘daily cycles’ and that is why I have a hard time believing that Oils reaction to the War on day 30 has put in a dcl rather than a half cycle low. If Oil breaks above the 10sma I may have to reconsider, but for now I’ll call it day 32.
.
The USD is dropping into a dcl.
.
This is GOLD LIVE at 5 a.m. – Gold is pushing higher again on what is only day 3. Day 3 out of what should be an ICL means that this has plenty of ‘time’ to continue to push higher.
.
Live at 5 a.m. ET : SILVER is on day 6 and it pushed above the 10sma and is rising up again today. So both Gold & Silver paused for 1 day on Tuesday, but Miners did not pause, they were green…
.
GDX dropped and started to fill the gap open, but it reversed higher again after doing so, despite the fact that Gold & Silver were red. This makes it look like that Gap may not fill and a tag of the 50sma may be next.
.
Everything moved as expected and we have the ICL in place for Gold, Silver, and the Miners. I have mentioned that from this low a Buy & Hold can be the best way to add gains, since you aren’t on the sidelines when they gap higher in the morning. I will show you something more about that below, enjoy your Wednesday trading!
.
~ALEX
.
HMY – This is a perfect example of why ‘Buy & Hold’ works well now. Will those gaps fill? We do not know, since many gaps like that did NOT fill in 2016. That said, it is very hard to buy this now since those gaps Could fill, but what if those gaps never fill? A ‘Buy & Hold’ out of the reversal lows would have you in it and just riding good gains already.
.
I just wanted to point out that KGC put in an ICL with what now looks to be a shakeout and recovery. I know that there is a gap that could fill if we get a dip in the sector, but this is buyable as a starter position and then add if we dip. It may just run higher from here too.
.
Are you having trouble buying Miners because you waited??
.
If you are having trouble buying because Miners like GFI, AU, and HMY look like this (Well off the lows and full of gaps that might fill)…
Then you may want to run through your list of miners like BTG, EGO, SA, SAND, FNV, RGLD, OR, IAG, KGC, GFI, NG, NGD, NEM, etc. Using their chart, do you see ones that are moving off of the lows, but still fairly close to the lows? Buy a starter and add if they dip.
SA ($9.70 to $11 is good!) – Gold is only on day 3, so if these are still at the lows and an ICL is in place, these should make good gains when they really get going. RGLD, FNV, NEM, etc have not exactly ripped higher without you.
.
Yesterday I mentioned in the commenting area that Uranium Stocks look to be reversing at support. Let me show you a couple.
.
DNN -I grabbed this chart 13 minutes after the open, so don’t go by the volume, I was showing the reversal at the 34 sma. Many were reversing at the 34 and 50 sma.
UUUU started to reverse at the 50sma, so that was a buy with a stop.
.
I do want to mention something about Uranium Miners ( & this can apply to Gold Miners too)
.
NXE reversed at support and looks ready to go again, but I did just want to point out that these can also become choppy as they consolidate recent gains. That means that we may get another strong run higher similar to the beautiful run that we saw in August to September, OR…
NXE these also might become quite choppy bouncing higher along support too, we just don’t know, but they had very bullish moves out of the lows and that makes this a bullish set up. I just didn’t want anyone to be surprised if they don’t just rocket straight up from here.
.
TSLA – As the markets began to bottom, I’ve been watching TSLA form what looks to be a large triangular pattern.
1. You could have bought the reversal low near $240 OR
2. You could have bought the break of the 50sma at about $250, or
3. Someone can still buy the breakout if that comes next. Tesla $270 is a clean break. I have good news though. I actually captured this chart midday and it pulled back at this resistance area, so…
.
I captured the above chart midday and it pulled back into the close with the general markets ‘pop & drop’, so you can buy it cheaper if it drops to back test the 50sma at the $250 again, or wait for that breakout above Tuesdays highs near $270.
