4-18-2018 Happy Days

It was another one of those days when it seems like almost every sector had green in it and stocks that were moving higher yesterday. Lets take a short review of a couple of different  sectors and then discuss some of our current bullish set ups…

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NASDAQ from yesterday – Early in the daily cycle count, I was leaning toward a bullish resolve of this battle at the lows. It was the most likely scenario due to cycle count and many of the stocks that I liked were holding up nicely.

 

NASDAQ – We got the gap higher & break of the 50ma, and then slowly the markets continued higher through the day.  ‘Short covering’ may have continued as the day went on and may continue today.  On day 11 – this is a bullish break.  To prepare us for this outcome…

 

TAKEN FROM YESTERDAYS REPORT –  I wrote this,  ” If we break out…it is a buy opportunity.”  and I added a list of healthy stocks that we have been trading and maybe even already still holding.  I also posted  a bullish chart of Casa.  Click to enlarge if necessary.

 

CASA as of Tuesday   – CASA has acted correctly during this entire market correction.  Recently bullishly riding the 10sma, it popped Up almost 10%.  This will probably break out to new all time highs.  If it drops intraday on Wednesday, it could be bought.

 

So the General Markets broke out higher, and we may get some short covering  and follow through buying.  Before discussing a few more stocks,  let me cover  XLE & GDX briefly.

 

 

XLE – As expected, the break from that base continues toward the former highs.  We may see a bull flag and then a continuation, depending on how OIL moves.  Many Energy stocks are running too.

 

GDX – Miners are riding the 200sma. Many were green, so it seems like all sectors are taking tuns riding higher.

I want to look at a few of the stocks that I have recommended in recent weeks ( Some I have owned) and these are just a few of the ones that you should not have been stopped out of.

 

SAIL – I held on to this, because it never even tagged the 50sma during the market drop.  That is strength.   It quickly gained the 10sma too.   Now we have new all time highs and it was up over 10% Tuesday.   In Feb when this broke to new highs it moved higher day after day.

 

CASA –  Never tagged the 50sma, regained the 10sma. Up almost 10% .  This could make another run.

 

SQ – So this one is actually a low risk buy.  It is at the 50sma.  My stop would be under the blue line and I’d raise it once it adds to gains.

 

IO – Also low risk,  this actually climbed from $22 to $28 since Mid March, along the 50sma.

 

PAGS – Kathleen mentioned this in the comments, and I really like this chart a lot. That was a nice 8% Pop off of the 50sma.  This could run & be at new highs again. This is a buy in my opinion, and it is oversold, so I personally  would buy it.

 

TWTR –  TWTR popped over 11% and regained that 50sma.

So we are seeing bullish action after this correction has bottomed out.  It is a good lesson of what riding a bull really feels like.   We look back at Bull Runs and can say,  “Why didn’t I just buy & hold NVDA or AMZN?”,  but this is what it feels like most of the time.  The consolidations take time, and then the run higher can be quick and exciting. Lets continue to ride these bullish stocks and watch how things look as the daily cycle ages.

 ADDITIONAL NOTE:  DAILY CYCLES in the general market can run for 30 – 40 days. I had  someone say that ” Now that it is too late in this daily cycle to be buying, should I wait for the next dcl?”   This is the dcl area, and it just had a long bottoming process. The General Markets  may only double top, it also may break out, but we are not ‘his late’ in the daily cycle.  The individual stocks that are near support may run better than the general markets too.

 

 

 

Now I want to discuss what I touched on pertaining to Blockchain or Medical Marijuana stocks, how they move, and how they pull back.  Some began to pull back Tuesday,   so let me review just a couple of stocks.

 

GROW  is block chain stock that ran higher out of the lows recently.   I captured this at 10:21 a.m. for one of our readers

GROW at the close – This could be a strong set up if this sector remains bullish. Always use stops.

 

SSC –  I still own this one, since I bought it lower.  This doesn’t look like much of a run, but look closer, it doubled. It is still almost 100% above the lows.  My thoughts are on the chart.  If it drops to the 50sma, and reverses, I may add- they already released earnings on March 30th and that is when this run Popped again and broke the 200sma.

 

 

KSHB #1 – In yesterdays report I discussed how quickly they move, how sharply they can pull back.  This is what I wrote for KSHB about the possible back test of the 50sma  ( I OWN IT- STILL HOLDING).

KSHB #2–  So I didn’t say to buy it, but put it on a watch list, and maybe buy if it at support  ( if it tags the 50sma and holds up).  Into the first hr of trading , I drew this up for a reader that wanted to buy the gap fill.   KSHB was Pulling back, we had a gap fill, but this STILL COULD drop to the 50sma, so I would be patient.

KSHB #3-  It is almost at the 10 & 50sma, and volume is less than 1/2 of the prior 2 days, and that is bullish so far.  This may become a BUY   IF- IT- HOLDS – SUPPORT.  My stop would be the blue line.

 

CNBX –  I bought this and was going to add on the break out. It dropped to the 10sma, so I may add here, because I DO think that this sector may be coming alive.   Again,  these move VERY FAST,   and may not be for everyone. The MACD has bullish divergence through march, and I can clearly see where my stop should be.  I will wait for a reversal to add.

 

 

MGTI #1–  This is a block chain company. It looks to be making a long rounding base, so I may be early in this one, I own a small starter position.  If this sector is going to recover, the gains (  & story)  on this one will be a good one. Let’s zoom in…

MGTI #2 – It has popped and remains above the 10sma. That tiny little pop was  a move from about $1 to $1.50  and if this simply ran up to the 200sma, it would be an excellent trade.  I have traded this one before.

 There is only so much that I can put in a report, so check your watch lists and check your charts.  I saw Green in many sectors, including Energy & Miners yesterday.  For example: I have watch lists labelled  ENERGY, PRECIOUS METALS, SILVER STOCKS ONLY, TECH STOCKS, TECHS STILL NEAR THE HIGHS / ABOVE THE 50 SMA, BIOTECH, BLOCK-CHAIN, MEDICAL MARIJUANA, etc , and  I just want to say that yesterday I saw plenty of green in just about every sector.

Some of the MJ stocks were pulling back from their recent strong gains, but some of those may be setting up as lower risk buys.  I WATCH FOR A STOCK PULLING BACK TO TAG SUPPORT AND I LOOK FOR A REVERSAL.  It may take a day or 2 or 3, and you may not catch THE lows, but the way they move, you can still catch a large %-Gainer.  I will demonstrate below what I look for in any sector when looking to buy a pull back, and PATIENCE is the key.

 

Enjoy your Wednesday trading, and may your account get some follow through 🙂

 

 

~ALEX

 

I said above that  I WATCH FOR A STOCK PULLING BACK TO TAG SUPPORT AND I LOOK FOR A REVERSAL.  It may take a day or 2 or 3, and you may not catch THE lows, but the way they move, you can still catch a large %-Gainer.   PATIENCE is the key.

I say that because I honestly have had people say,  ” I saw  XXXX run from $10 to $20 and I really wanted to buy the pullback, so it dropped $1 Monday and I bought it, but now it is at $16 on Wednesday.  What is wrong with this stock?”.   Answer:  Nothing, you bought the pullback on day 1, and that pullback was just getting started.  A normal pullback could pull back 50% of that last run, right?  We have seen that a lot, and it often takes days, so lets look at a MJ STOCK set up and I’ll show you what I would look for.

 

MEDFF  #1– Let’s just say that  JOEY saw MEDFF run strongly over the past week. Higher & higher each day, it ran better than JNUG lately, going from $11.50 to $16.25.  JOEY  WANTS IN!

 

 

MEDFF  #2 –  We are looking at a great run from $11.50 to $16.26.  Yesterday it dropped 4% and if JOEY just  jumped in simply to ‘buy the dip’ yesterday, he could have some pain in the next few days.  Why?  If MEDFF ran higher for  6 days, it could take 2 or 3 days to pull back to support.

 

 

 

MEDFF  #3–  I usually try to look for what might act as support and have a PLAN.  look for the FIB #’s  of  38.2 & 50% , for example.   IF IT DOES NOT REACH MY SUPPORT AREA, and just turns higher & keeps running, I often just look for another candidate. I want a low risk entry ( near a Support area ) so that I can place my stop a bit below that area after buying.  That gives me low risk ( a small loss possible) , higher reward ( more upside).