Ready To Run

Todays report is simply to discuss stocks that look ready to run. Tuesday, while looking at the S&P 500, we saw a reversal. We also saw a reversal in many of the stocks that I had been eyeing, so let’s take a look at the the markets and some of those stocks.

This was from yesterdays report.  It was bullish overall, because we were locking in a right translated daily cycle, but I was also expecting a dip into the daily cycle low. In the weekend report, I pointed out the 50sma as a possible target for that drop.

SPX – On Wednesday we saw follow through on the reversal.  I do not know for sure if that was the dcl, but these markets look set to go higher.

NOTE: To release this before 8 a.m. Eastern time, I cannot proof read it, please ignore typos. Thanks.

NASDAQ, IWM, XBI, etc all look similarly bullish. So here we have the

XBI – I know several readers that like to try trading LABU , and this break out makes LABU a buy.  PLEASE KNOW that LABU is a 3xETF, and not for long term holds and NOT for inexperienced traders in my opinion.

CLF –  If you have been with Chartfreak for a while, then you remember trading this last spring, and it ran very reliably. In November CLF doubled and I’ve been waiting for a pull back and a low risk set up.  This looks low risk.   It has held above the 50sma and looks ready to break out higher.  I would buy it anywhere here with a reasonable stop, but some may wish to wait for a break out above the 10sma.  I would expect this to run $5 higher, but just buying it from here to Dec highs is a nice trade too.

FCX – I posted this chart as a buy for FCX on Jan 3.  Compare it with CLF above.  I think that it looks exactly like the set up for CLF above, so I wanted to point this out.

FCX – You can see the set up is playing out bullishly.  I believe that CLFs set up is low risk and very much the same as CLF.

 VALE –  Another set up similar to FCX and CLF.  I posted this JAN 3 chart in my recent report, and VALE was $8.05.

VALE is still  $8.05 and sitting at the 50sma, so if you liked FCX and you like CLF, you also might like VALE.  It has waited here for us to enter 🙂

WRN CHARTs – I was accumulating this and posting charts in December reports.  This shows the long term potential, if you bought and held on.  (  I bought, accumulated, and sold 1/2 on the last run).   I may buy that portion back now.

WRN – This was the cup and handle that I was accumulating around and below $1.00 –  others here joined me, it became a nice trade…

WRN –  After running to $1.80,  it pulled back and flagged for a bit.   It might be ready again, or it could consolidate for a bit longer.  It is a buy if you are looking for a longer term holding.  The reason that I think it might be ready to run is that  FCX, TGB, HBM, and WRN  are copper stocks and take a look at TGB if you get a chance.

NSU WEEKLY  –  This is a gold Miner that is also a Copper stock. It is a low risk buy right here, as it sits and held on a confluence of moving averages.  Honestly – It has been consolidating for soooooo long, and I have been watching it for SOOOO LONG, that I have to point something out on a separate chart.

NSU WEEKLY LONG TERM –

I have traded this stocks on several occasions and it simply continues to consolidate and do some base building. It is in a multi year trading range.  Lately I cannot bring myself to take a position, but once it breaks out and  gets running, it could really do well.   Well, the above chart shows that we may be at that point where it does break out and run higher.

HBM –  Another copper stock that looks found support on the 50sma and broke higher, ready to run. This MIGHT drop and fill that gap, so I would buy it if I see it do that. I already took a small position for a quick trade, but I may add on a drop / gap fill  and see what I can squeeze out of it, if these copper stocks all continue to run higher.

TGB – My Dec 15th chart showed the Big Picture potential. A copper stock.

TGB WEEKLY –  Expected the run to continue higher after a consolidation.

Posted on Dec 16th – It looked like it could drop to the $0.70 support area and that would be a buy for longer term

TGB  did drop to the $0.70 area and has reversed higher.  Copper stocks have remained bullish.  Some here bought this, congrats! If it does not immediately break out and forms a handle, then I may buy it, and will post a chart here at that time. This is on my watch list, but it looks ready to really run again.

URANIUM stocks dropped to red yesterday and then put in reversals higher.

URRE made some bullish progress with this break out. This is at least a 6+ month base, so this is a great set up.  Many will say,  ” How can I buy it if it is up 15% Wednesday?”  I believe that over time, this has great upside potential.

URRE WEEKLY – Due to reverse splits, the chart is distorted, but the potential is real. A break and close above $1.90 could get seriously crazy.   I will update this chart in the future and I think many will be surprised at what could happen here.

WPX  –  I know that OIL has very high COT levels, and Oil is in the timing for a dcl  ( Daily Cycle Low), but I see many Energy stocks that still look ready to move higher.  WPX is one of them, and this break out is a buy for traders.  OAS, AREX, CWEI, LPI, ECA,  PACD, NADL, etc are setting up bullishly again.

PACD – I bought this one, but I sold it for a very small profit when it began pulling back.  It actually pulled back further than I thought that it would, so I posted this chart pointing out that the 50sma may be where it was going. It could be bought there if that and the base holds as support.

PACD – PACD did hold at the 50sma and now is reversing higher with good volume. It could be considered a low risk buy with a stop below the 50sma.  It is oversold and in November – December it ran from $2.75  to $6.75.  That was huge, and it has been consolidating those great gains.

I also wanted to point out that since we saw GOLD close above the 10sma, we have been discussing buying Miners. I mentioned that I was buying  GPL, DRD, TRX, VGZ, etc near the lows.  I had some charts of other Miners in past reports from Dec and January, and I will include a few in this report too.

VGZ – I think the potential on any set up like this is great, and I do think that we have seen an ICL / YCL in Gold. I bought positions in VGZ and TRX simply due to these bullish types of bases.  I will ride and hold for as long as it remains bullish.  You can see the purple dotted line on VGZ.  I  view a break above this line is a break out from the base.

ALSO in yesterdays report was PAL, a Platinum stock sitting on a double bottom low. I’ve had a few buy it and ask, “Where should I sell?”.  That really depends on your trading plan, and here is why…

PLG popped about 8%, now well above the 50sma.  Is that good enough for you?  Just  scalp a decent % and pocket it?  If so, PLG was up over 10% at one point yesterday and you could have just locked in gains.  On the other hand, if GOLD put in a long term low and platinum did too,  PLG could continue to run over time.  Look at the run last spring from $1 to about $4. Similar to past trades in TGB, WRN, etc, these can be longer term ‘buy & hold” plays too.  I think that PLG could double or more, but that is only if you are patient and can ride the waves.

AG – If you take a look at what we have here, we actually have a long solid base. I personally would just buy it because I think that the lows are in using Cycles.  Technical traders may be waiting for a break above the Magenta line or 50sma, so this could start moving when we see that.  If you wanted a position in AG, now is a good time to get in near the lows.   Look at a long term chart and remember what AG did last spring.

CDE –  Again, we could be at the 2017 lows.   In 2016, it ran from $2 to $16!   It was a solid run, and back when it was $16, people would give anything to be able to buy it back in the spring when it was around $9.  A week or two ago it was around $8 and no one wanted it. Now its around 9 or 10, does anyone want it?  If CDE breaks above the 200sma, technical traders may start buying it and push price higher.

If this was the start of a bullish 1-2-3-4-5 run from a base,  the ‘2-3’ should be bigger than the ‘base to 1’.  In 2012 , CDE ran from $15 to $30.  The former highs can be considered a long term target if we break this down trend.

So quite a few trade ideas in various sectors.  DO NOT let this amount frustrate you.  You cannot take them all, but having choices is what experienced traders want. Do you want a Miner?  you see a few here.  Did you miss that run in Steel, Aluminum, Copper in the October – December time frame?  They pulled back and FCX, CLF, VALE, etc look pretty good here.  Have you traded the Biotech sector in the past?  XBI and IBB look to be breaking out.

THINK ABOUT YOUR TIME FRAME TOO, and then find 1 or 2 that you like. Do you just want to quickly scalp a gain just about to break higher?   Maybe a trade in FCX, CLF, VALE would do the trick.  Do you want to buy a stock low and in its base or just breaking from a base (  like a Miner or PLG or URRE) and just ride that position for a few weeks and see what happens?  There are a few of those here too.  I’ve been accumulating Miners and trading other ideas myself.   Enjoy your trading day on this Thursday, January 5th!

~ALEX