Wash Rinse Repeat

Well, I had a weekend report with 32 charts and not much has changed in one trading day,  so lets do a little review and then look at some trade set ups.

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Last week we saw a healthy set up for a move higher

This week…

We may stall again at the 50sma the way I see this break out. The indicators remain bullish, the volume was light.

WTIC –  Oil, no change from the weekend report, I’m still bullish.

GOLD –  No change.  In this chart, I was discussing a possible flag formation after the strong run up,  before there was a flag.

It has formed.  I prefer a drop to $1180 though. A surge higher, a big drop, a surge higher , a big drop.  Wash-Rinse- Repeat. It is known to be a bullish continuation pattern.

SILVER – This kind of looks ready to turn higher, as a wedge. 

GDX  –   It looks ready to break out , but also had weak volume.  That makes it look a bit tired to me, but that can change if Gold moves higher. Surprises have been to the upside, right?  Wash- Rinse- Repeat.

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As mentioned in prior reports,  despite the movement of Gold , GDX, or other indexes, many individual chart set ups are acting correctly.  This is encouraging, because  I keep finding good looking set ups in Metals & Miners, and they break out even if Gold only goes sideways.  As a learning Lesson, Lets look at some stocks playing out this way.

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I’ve been discussing that base & set up in BAA since it re-gained the 10sma at 17 cents.   It was up almost 20% Monday with Gold down.

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BAA was only up 7% here, and this is what I expect in the long run.

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I want to point out that when conditions are favorable and you see a stock pushing along the 50sma, it may want to break  out and run.  I pointed this out with TGD ( Which has doubled since).

TCK  was pushing on the 50sma for weeks at the end of January, broke out, back -tested that 50sma , and took off.

SWC was pushing on the 50sma for days. It’s hard to see here, because I drew a trend line on it.

I had mentioned last week that SWC looked like  TGD, pushing under the 50sma. 

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SWC –  Then I also mentioned in the comments Monday as it moved above the 50sma that it was a buy for this reason.  I hope some were able to catch that.  It released earnings and Popped.  I expect it to run higher, even though it could back test that 50sma.

TRQ –  Also mentioned last week, and was also pushing on that 50sma, and also broke out today ( not shown in this chart).

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So as a review to show these set ups can play out over a longer period of time:

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  I have been mentioning that I expect Commodities to run and I pointed out set ups weeks ago in  FCX, VALE, CENX, AA, X, AKS, STLD, etc etc .  They move higher,  pull back and worry people, then move higher again and again.  A stair step higher.

CENX  offered a nice 2nd buy at the 50sma ($4).

AA pointed out Feb 3, breaking out here.

AA – Back tested that break out, but continues higher.

Now lets just post a couple more  charts of interesting set ups in Metals, Miners, and Energy . Some can be bought when they pull back, others may be ready now.  You could write them down and keep a watch list or maybe even take a small trade if the set up looks good.

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SXC –  This has already doubled, but looks like it wants higher price.  This could actually eventually run a lot higher. It might pull back to the 50 sma first, because the volume is slowing down.

PBR – Break from a base, 17% gain Monday.

LODE –  this is an interesting set up flagging.

CLF – Its a $2 stock that was over  $90 5 yrs ago!  This could be bought now ( Not sure when earnings is off hand).   CLF is quite a Popular company.  Well Known in its sector.

X –  Steel stock shown here already in the weekend report. Nice base with good potential.

  I’ve also been mentioning a few other areas of interest, but obviously I am trying to focus mainly on Miners and a possible 2nd leg higher when this one finishes resting, and Energy may really make some good moves for traders too.  This is really a traders paradise with all of the different set ups that I can see.  Even short term buy & hold investors (  1 – 2 weeks holding) have been rewarded with FCX, VALE, CENX, etc.

Outside of metals and Miners and Energy, I’ve noticed improving charts in some Solars, Shippers, and tech stocks. Too many to list in 1 report, but here are a couple of ideas. Consider these only for experienced traders,  hopefully able to watch their positions if a buy is taken.

SBLK

DRYS

See also SB, NM, SOL, JKS,  CHK .   I’m looking at some energy stocks like   PACD & ARP  as flat bases, possibly ready to trade now.

 So these are a few ideas.   I may write a public report later today, and it will only include a couple of trade ideas.  I may discuss FCX, VALE, CENX, and how they have performed.  I usually  wait at least an hour or so after the market opens to allow anyone here to trade in the morning first.

Fast markets, some nice set ups, decent moves, but please remain cautious and always be ready to sell if a position moves against you  (  Use and honor stops).   Also try to be aware of when company earnings are if you plan on holding a position for a longer period of time.  Stay Frosty and best wishes!

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~ALEX