Tuesday – Sharp Turns

In the U.S., Thursday is a Holiday and the markets will be closed, followed by a 1/2 day of trading on Friday. Usually many are traveling to be with family on Wednesday afternoon, so the markets volume & trading lightens up on Wednesday.  That said,  it is a bit hard to know exactly what to expect going forward, especially after Tuesdays trading.  For now, lets take a look at Mondays trading, and review a couple of the ‘Changes’ that we discussed in the weekend report.

WTIC – Notice that Oil is still up near its recent highs, but…

XLE – Recently The ENERGY stocks sold off rapidly, closed under the 50sma, and on Monday they also closed slightly red with Oil back near highs.  I am not buying Energy stocks at this time, and I think that they are signaling that Oil will not stay at the highs.    If Oil sells down, this could become a bear flag.

WE DISCUSSED THE USD, GOLD, SILVER, and the MINERS  in the weekend report.  Gold shot higher Friday, Miners broke out, and the USD was due for a dcl.  Was it a false break out by the Precious Metals, with the USD within the timing for a DCL and expected to move higher? Or was something changing?

USD–  The USD likely has its DCL in place and would be on day 3 here. Look for a break above the 10sma. So did this push higher in the USD affect Precious metals?

GOLD – See the chart, the break out over the 50sma was reversed. A possible Bull Trap

SILVER – It looked like a BULL TRAP, breaking above the 50 & 200sma, and on Monday Silver sold off with high volume.

GDX – Miners did not drop as drastically with the Metals, but did close below the 10sma.

GDXJ – GDXJ had broken above a downtrend line, but gave it up on Monday.

So in our weekend report, the changes that we saw did not make a lot of sense in many ways. We were either seeing a major character change, or a head fake / bull trap type move.  At this point, considering cycle timing, it does appear that these were bull traps.

Let’s look at some of the other trades

RIOT – I have traded this repeatedly, and warned that it does move like a Cheetah.  FAST.  I was looking for a break out here.

RIOT– I also pointed out the upside potential on the weekly chart if this breaks out & runs.

RIOT –  It dropped down to $8.06 in the morning, and I mentioned that I was adding to my current position.  Then RIOT shot up to $10.50 midday.  This runs like a Cheetah!  It closed up almost 30% today alone. That volume could indicate strong buying pressure that may have follow through. Congrats to those that bought it, I hope we get immediate follow through.

CBDS – I pointed this one out twice, saying that this pattern was bullish in up trends, and I like it, if it breaks higher – it is bullish.  This sector has been acting bullishly.

CBDS – And there we have our strong break out. It was up over 15% midday, and I think it has further to go. This sector has been smoking 🙂

MBOT – MBOT got moving on Friday and we looked for  (and got) Follow through on Monday.

MBOT – This close up view shows that MBOT ran from $1 to $1.40 , and then $1.07 to $1.50+ in September.  Those are BIG GAINS, and you may want to decide now if you will sell, or hold and hope for a break out & continuation this time.   Scroll back up to the chart above this one, and you’ll see why it is hard to sell.  It looks like it wants to run much higher to $3 if it gets going.

NVAX – Over a week ago I mentioned that a reader named Chuck ( who doesn’t post in our comments section – thx for the heads up) emailed about the heavy short position in NVAX.  It started to break from a 2 week mini base above the 50sma.   We would expect higher price after this POP. I used this chart on Nov 13.

NVAX –  After that POP ( Magenta arrow), it dropped for 2 days, but reversed on support last Thursday.  It looks to be on its way higher again, hitting a high of $1.38 Monday. This is still heavily shorted, if you own it we do have higher expectations.

OGRMF –  I was asked if I am still holding OGRMF, APHQF, SPRWF, & CNBX.  Yes, I Sold MYMMF ( It did start higher again today), and I still like these charts and sector.  Below was the break out in OGRMF.

OGRMF –  After running higher, it dropped to support and reversed on Friday. I still own it and it looks like more of a buy than a sell.

OGRMF – This is a bigger picture and it shows that it is just trying to break out, trending higher since June.

APHQF – This has been choppy, but it is also bullishly moving higher.

Again, it is a holiday week and trading will probably lighten up as the week goes on. The bias can be to the upside in the general markets, so we’ll just see how things go from here. The Precious Metals sector seems to have put in a false break out on Friday and reversed Monday, so we might expect more selling there and a bit higher price for the USD.   Enjoy your Tuesday trading 🙂

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~ALEX

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On Monday, I mentioned in the comments section that I have been watching the Semiconductor sector with some expectations going forward.  I’m sorry, I was going to share those today, but with all that happened in the Precious metals , Energy, and other trades in this report, I just ran out of time.  🙁     The things discussed in this report were a little more time sensitive and needed to be covered today.  What I was going to point out about the Semis was less time sensitive.  That information isn’t going to change anything if I put it in this report or the next one, it is longer term information.  I will cover that in a report this week, most likely the next one.