January 10th – Additional Thoughts

After our normal market review, I wanted to share some additional thoughts about the Uranium Sector, since it has also been perking up and showing signs of life after a bear market sell off. I don’t want this to distract anyone from our current focus and trades, but my pointing out a few things here today allows the readers some time to do a little additional research of their own if they are interested. By the end of this report, you will see why I think this could be worth bringing up.

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DJIA –  No Dow 20,000 yet. This really doesn’t seem to be a true magaphone topping pattern, but it is close. A flat top pattern would be bullish, so I’m watching for a break of either blue line.

USD – The USD could still drop to the 50sma currently at 101.85

WTIC – In my Jan 6th chart, I pointed out this wedge forming and expect a drop in Oil into a dcl soon

WTIC – On day 38, we see a fairly sharp drop, so that drop into the dcl may be starting.

GOLD –  Day 15 and GOLD is within the early timing that it could top and find its dcl anytime, but I would picture GOLD actually breaking above the 50sma first ( like GDX has), and then back testing it as the dcl. If it cannot take out the 50sma, it may crawl sideways for a few days.

GDX – Day 12 and we saw some selling Friday and Monday. I called for this possibility , yet I also received emails asking how concerned I am about it.  I am not concerned. I see them as normal Wiggles and noise at this  point. People get nervous and sell when they see a dip like this and often regret it later.  Look at this chart. Above the 50sma and 10sma,GDX remains bullish and price always wiggles around. Discipline prevents Fear from shaking one out.  This remains a bullish set up and we are in the first daily cycle.

URANIUM

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Many here know The DOC and respect his work. In November, he actually emailed me concerning the Uranium sector as shown below. His studies were leading him to believe that Uranium was bottoming. I listed the following stocks for us to monitor. I think the DOC was correct. These do look to be bottoming.

Notice that his email was Nov 21st, and lets see what Uranium has done since then. After a long consolidation in December, URA took off again.  Is it done or is this the start of something bigger?  Lets dig in.

URA –  Recently I posted this Jan 5th chart in the comments section  ( Thanks to Ken too, for pointing out the recent action in Uranium in the comments section). At the time, I was watching and trading a Uranium stock and thought that we might have a little more upside left in URA, before a normal correction sets in. Notice the Magenta or Blue line would be a potential target(s).

This is how I am looking at URA now …

We hit my first target and we do see a reversal, so we may begin to pull back. The RSI is overbought, but that and the stochastics can actually stay that way, so price could also just go sideways like it did on that 3-4 move. ( After 1-2-3-4-5, you would expect an a-b-c drop, but look at the 3-4 move. I can see an a-b-c in that, so again, we may just consolidate sideways. Why do I see that as a possibility? You will see on the weekly chart in a minute. What I am looking at looks like another cup & handle pattern on the weekly.

What I want to point out is that not only is the URA ETF acting bullishly, but several Uranium stocks are also forming bases or breaking out at this time.  Since this sector has been very beaten down and unloved, it may offer some solid upside potential if we get some more short covering or follow through buying.   Let me show you some of the progress that this sector is stealthily putting in.

THIS is a chart that really grabs my attention, because the weekly is what I use to tell me a bit more of the big picture or longer term trend possibilities.

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URA WEEKLY  –  Look at that volume for 4 days trading last week. This is actually a solid move from a 1 year double bottom base, with a higher low in November after a steep sell off.  My 1-2-3-4-5 weekly count may or may not play out, but it would indicate that URA has plenty of upside left over the next few months.  The weekly charts are NOT very overbought and this is a strong break out. The break of the GREEN DOTTED LINE is when I decided to bring this sector to the attention of the readers here. It is confirming its bullishness. We are focused on Miners, and I didn’t want to distract readers since the Miners should do excellent, but this sector looks to have double bottomed too.

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Let’s look at Uranium stocks

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CCJ – For the BUY & HOLD CROWD?  I’ll start with a higher priced company, now trading around $10. This could possibly double by the summer of 2017. CCJ was a $40 & $50 stock before the 2011 earthquake in Japan that caused a melt down of their nuclear power plants.  That year ( 2011) is when Uranium went out of favor and started the bear market sell off.

URRE – I posted 2 charts to show a set up that I think has future potential too  ( I own it). URRE was breaking out above resistance, the 200sma.

URRE WEEKLY – It is pushing against resistance on a weekly chart and I still like this set up. HUGE potential if this runs strongly.

URG WEEKLY – URG trades under $1, but is not an OTCBB stock or Pink Sheet stock. It trades on the AMEX.  I see very nice divergence in the weekly MACD. The set up looks like it wants to break from this base and attain higher price eventually.

DNN –  Also trading on the AMEX,  DNN is another Uranium stock with a double bottom / higher low in November.   DNN has broken out from a downward channel. These are cheap stocks trading under $1, because we have had a multi year sell off.  As always, due diligence is recommended.   DNN has popped up, sideways, up, sideways, up (so far).

DNN DAILY  as of Monday – A pullback may offer a low risk entry in time.

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UUUU – Finally this stock. This one is becoming interesting to me.

1.UUUU did an offering and got hit hard in September. Notice the gap down slam on the chart.

2. As a result, management wrote a letter to share holders to assure them that the offering was carefully thought out and in the best interests of the company. Management basically says that they are share holders and have faith in the future of the company as they use that money for expansion.

3. In October UUUU (Energy fuels) intersects and discovers good amounts of Copper on their properties while considering expanding drilling.  They now announce that this could be mined and offset other costs.  They also find Silver, Zinc, etc.

4. From December to now UUUU ran from $1.30 to over $2.00, about 60% in a month and 2 weeks. See the daily chart below and let’s look at the weekly chart too.

UUUU WEEKLY – So now this weekly chart also becomes rather bullishly set up in the bigger picture. It is a $2 stock. If it breaks out above the 50 weekly ma at $2.06?  I think that that would really add bullishness to the big picture. Admittedly, it has work to do, but a $2 stock with this potential, like URRE, may be worth a try for some buy & hold. This sector seems to be coming alive.

Click for a UUUU report

So again,  I am reporting on this sector because it has acted bullishly coming off of the lows since November. It is not just 1 or 2 stocks bouncing from short covering, but instead it looks to possibly be an entire sector that is starting to recover.  This allows anyone that is interested to do some due diligence in this area, and look for pull backs to enter.  I will try to cover some of these stocks if they continue to set up in a bullish manner.

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CONCLUSION:  I see several bullish sectors setting up to offer great gains to traders and buy & hold investors alike. I am happy with what I see, I do believe that 2017 is going to be another year that offers a variety of bullish trades in a variety of Bullish Sectors, similar to 2016.  When Miners consolidated or dropped into a dcl, we went to Energy. When Energy pulled back, we grabbed metals stocks like X, AKS, VALE, CLF, and so on.   By being alert and aware of the various set ups that formed, trading was excellent through out most of 2016, with the occasional lull in excitement. Now it looks like we may be enjoying that in 2017 too.   You can’t invest in it all, so currently Miners look to be in the place to be.  We are likely in the first daily cycle of an ICL / YCL, so Miners have time to run much higher over time,  I.M.H.O.   Enjoy your Tuesdays trading!

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~ALEX

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EDXC –  From my report on Medical marijuana, EDXC jumped 13% and looked ready to move higher.  I mentioned that I liked their story, with soft chews for animal pain and anxiety. Was this ‘just starting’ to break from the base?

EDXC – Yes, and Monday it popped by another 40% by the end of the day. They announced 145% growth.  A Cup has formed.

PLG – A Platinum stock. PLG looks like it is setting up for a low risk buy even today. Look at the volume as it drifts down to the 50sma.

URRE – URRE was breaking out above the 200sma, so I viewed that as bullish and low risk and posted this buy on Jan 4th.

URRE has been dancing on the 200sma and this is still a bullish break out.