November 7th – More Of The Same

Again, not a whole lot has changed, but I am expecting some changes as we move forward.  Let’s discuss our current market set ups…

SPX – This looks the same as we have expected, but please notice the recent divergence.  This usually calls for a pause , a sideways move, or a dip.   Let’s take a look at the NASDAQ and see what is happening there…

NASDAQ – The NASDAQ is a bit different. There is NOT the same divergence, but it forms wedges as it rises steeply, and then drops to remove bullish sentiment.  I think we may get a pull back, but I dont think that it is going to change the big picture.

XBI – I was asked about the Biotechs.  I see a repeating pattern of a strong run, and then we see it dropping to the 50sma area, bouncing around until it is oversold, and then it continues higher. A stop would be under the recent lows, because if THAT kind of a break occurred-  then it might be dropping to the 200sma if that was broken.

WTIC – OIL has broken out and suddenly paused at $57.69 Tuesday. We may get a 1/2 cycle low, since I think that the dcl  may have been day on 25 ( see the chart) . Cycles may be confusing people here, but I am Bullish in this sector, because the individual stocks have been very bullish.   Lets go bigger picture for perspective…

WTIC–  As you can see, $58 is resistance, and I called for a run to the $60 area, and then a

1. Pause, or

2. Sideways consolidation, or

3.  A pull back ,  but it all remains bullish for Oil in my opinion. We may evenback test the Magenta line. I own Energy stocks as long as they remain bullish. Bullish runs do include pull backs along the way.   Let’s look a Oil & Energy stocks…

XLE – A recovery would regain the former highs. Is Tuesdays stall  just a pause like the 1st leg higher had? Possibly. Please read the chart, It remains a bullish chart.

XLE CLOSE UP –  If the 2nd leg up is similar to the first one, I dont want to sell at the first or second pause along the way near day 7.  The first leg higher had similar pauses.  Time will give us evidence.

OAS #1 – Here is an example of a good stock running in this sector.  OAS has ‘paused’ a few times, but keeps on chugging higher. The ones that you own may do that too.

OAS #2 – Bigger picture, OAS is nearing solid resistance, and they released earnings and went higher in after hrs.  So, Wednesday we will see

1. A push through resistance  or

2. A fake pop and a normal drop to the 50sma 🙂

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GOLD –  So Gold dropped since yesterdays report, but it still looks bullish after breaking above a downtrend line and not taking out Oct lows. I am still expecting a break lower, but this has my attention.

GDX – miners did break below the OCT lows and have not broken free above the down trend line. This still fits my expectations better, and so fare the 200sma held down price. The chart is a bit mixed.

So not a lot has changed since the weekend report and Tuesday Mornings report.  We will continue to take this day by day.

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~ALEX

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Along with my recent picks of bullish set ups in  OGRMF & APHQF,  I found MYMMF, but this one comes with a bit of a story with it…

I have been doing some reading about Canadian Medical Marijuana companies, and this is where these 3 picks came from.  MYMMF is supposed to be a growth story, and after reading about it I decided to look at the chart Tuesday afternoon near the close.  The chart was great looking, a long base  or consolidation after a great run in June.   At the time, I noticed that the volume was pretty big for the day, and it was promising to break out soon!   And it was only at 42 cents while looking ready to break out. This could be a quick run back to 60 cents, and .42 to .60 is a win!  Same as a $42 stock running to $60 %-Wise, so I wanted to buy it quickly…

So as a trade, I tried to buy it and it started to run into the close VERY QUICKLY.  This is the funny part of the story, I tried to buy 8000 shares quickly and I would sell 4000 at 60 cents as a quick trade…and IT THEN IT TOOK OFF…

MYMMF-  This was the break out as of 3:42 p.m.

THIS WAS MY BUY FILL ATTEMPT  for 8000 shares –  Suddenly it was at 43 cents… So I put the BUY at 8000 shares @ the ask for 43 cents, and  it filled a total 2,780 .  Then left me there unfilled…

MYMMF–   So I kept chasing, I raised my buy to the ‘ask’ of 44 cents , it ran to 45,  I raised my buy to $0.46 & it jumped to $0.47, I could not get the order filled!  It then ran straight to 52 cents, and I only owned about 3000 shares  🙁   . At the close it pulled back to close at 48 cents,  but I could NOT fill my order all afternoon.  I now own 2,780 because it just took off without me.  I will try again Wednesday, but I chased this thing all the way up this giraffe neck and I could not hit the ‘ask’  (  I cannot use a  ‘market order’ on OTC stocks, my broker does not allow it – or I would have just placed a market order & caught the whole fill near 45 cents).

MYMMF–  This was the close, a surge to 52 cents with me chasing, and a close at 48 cents.   I need more  🙂

NSRPF– I posted this in the comments Tuesday, just pointing out that the recent consolidation in NSRPF looks so similar to the run up and consolidation of Aug / Sept . This may be all we get for a pull back in NSRPF.  I was hoping for a tag of the 50sma  BOTH TIMES.