June 12th Stock Picks
The weekend report covered the big picture for the various Market Sectors. Mondays trading did not change that outlook, so todays report will just cover GOLD, MINERS, and several stock picks…
GOLD – The down trend line was definitely broken, but will it be back tested? The daily sideways chop has been monotonous, the immediate short term direction remains cloudy, but I am longer term very bullish. Gold is due for an ICL and it is even possible that we are moving sideways like Dec 2015, with an ICL in place. The FOMC MTG Wednesday may be what moves Gold into its next direction, higher or lower.
I’ve recently mentioned that GDX or GDXJ looks bullish one day, and bearish the next, then bullish again, then bearish again. That is often the result of choppiness around important moving averages. Yesterday GDX & GDXJ looked more bullish again, we’ll see how they close on Tuesday 🙂
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GDX – GDX closed above the 50sma & the set up looks bullish, but caution is warranted going into the FOMC Mtg.
GDXJ – This volume was really unexpected. If this pushed above the 50 & the 200 sma, it would look quite bullish. You can see that it has moved above them in April & May, but gave it up, the chart remains short term unclear.
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I own a few positions in Miners, recommended owning Silver stocks in April, and as crazy as this sounds, I have owned a small position in JNUG ‘trade’ (avg price $13.90) for weeks now, when I thought that an ICL low MIGHT be in place. My stop may be hit tomorrow.
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EXK – Miners like EXK, FSM, etc are setting up bullishly, keep them on a watch list for a break out. You can see that this could break out or drop to the 200sma if the ICL is ahead, and remain healthy.
AG– First Majestic has been choppy, but it has been trending higher with higher lows and higher highs. New 2018 highs were tagged yesterday. This is not a straight up move, we have had plenty of time to step on board…
Last May 24th – Using this chart, I pointed out AG as having great upside potential. It was only about a month ago that price was the same as it is now. This is still a good price in the big picture.
GFI – That was a solid move in GFI on Monday. This one is still at its recent lows, so maybe it will start trending higher after the FOMC meeting and offer some great gains out of the lows. ( Watch list).
PVG – PVG broke higher from a long choppy base Monday. So we can still see that many Miners are actually acting bullishly, even though Gold is within the timing for an ICL.
URANIUM STOCKS
DNN – Uranium stocks were pointed out as Bullishly aligned in early June. This was DNN and I was expecting it to break higher, eventually reaching the Jan highs after forming a cup.
Monday saw some good volume on DNN as it resumes its break higher again.
UUUU– This was a chart of UUUU, to show the potential if it too continues running.
UUUU – UUUU could also be starting the next run higher. You can see the volume is stronger on the up days. It could have been bought at the 50sma, and also here above the 10sma before it breaks out.
URG – URG may also break out soon. So if you started positions in the Uraniums Stocks in early June, you could add to those positions as they look set to run higher.
CLD – After a strong POP , CLD has formed a possible Bull Flag at the 10sma. It is trying to break above the 200sma. Buy it here or when it breaks out.
CLF – In late April / Early May, I wrote about STEEL stocks and CLF was set up to form a cup in my opinion. It was a low risk buy here crossing the 50 & 200sma.
CLF – It ran swiftly, and now this also looks set to break out again, after consolidating those gains in May.
TGB June 5th – This was posted as a buy as it broke above the 50sma.
TGB – TGB still looks like it is running to the 200sma. If you didn’t buy this as it moved off of the bottom when I first posted it: 1. You could take a small position just in case it runs straight to the 200sma, and 2. Add if it dips to tag that 50sma for a back test. That would be a buy if it does, so this can also be placed on a watch list.
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For visual purposes, see the 2 charts below as TGB possibilities. I see either one as very possible, so I like to plan accordingly.
TGB #1 – This would be why you could take a small position now & not miss the move , or…
TGB #2 – If you took a small position now and it dropped to back test the 50sma, it would be bearable and you could add on that back test ( or stop out if it fails). The set up looks good for commodities though.
BASES
I personally love these set ups on the next 3 stocks. They are price breaking out from bases. I have been trying to wait minimize trades while waiting for Miners to set up, but I am also still trading good set ups until I see some progress with the miners, so let’s take a look…
FIT – I pointed out FIT on June 4th. It had ‘Popped’ above this base again, but this time it closed at the highs. Unfortunately, I did not personally take this trade. Note: Remember this base
FIT – Fit ran higher & really popped on Monday, almost 15% on Monday alone. Congrats if you are still holding this one. Now- Remember that base?
GPRO – Here is a very similar base & GPRO is breaking above that base. This could be bought and the first target would be the 200sma, but it should run further over time with a long base like that, barring any bad news.
PXLW – Here is another long steady base, and it too looks like it may be ready to break out. Buy it is it does, with a stop at the base. Again, I love these Bases and they can run, as we see from the FIT chart.
FNSR – After breaking above the 50sma, we got a back test in late May and then a move higher. Price may be ready to break above this upward sloping channel.
By the way, TGB was forming a nice base too, when it was pointed out here on June 5th. We were watching for it to break above the 50sma then.
TGB June 5th
TGB Currently, as shown above, breaking from a base. This is why I would seriously consider TGB a buy if it back tests that 50sma & the top of the base.
XONE – Take a look at DDD ( another 3-D Printing company). It ran from $9 to $14.50 since last month. XONE is now breaking above the 50sma.
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When Canada voted to pass the legalization of Marijuana, some of the stocks dropped, and many wondered why that is. Basically, it seems that several of these companies stocks had already been running higher on the idea that the vote would pass. When it passed, these became a ‘Buy the rumor, Sell the News‘ profit taking event. That pullback HAS NOT changed the Bullishness in this sector. Some stocks that did not run higher yet have actually started to run, and most that are dropping seem to be experiencing normal pull backs in a bullish looking sector.
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OGRMF– I still own OGRMF and it appears to be forming a bull flag. It has been fairly faithful tagging that green 10sma, so we’ll see if it tags it again and then breaks higher.
CBIS – Price has popped above both the 50 & 200sma. This is a low priced penny stock at 7 cents, but it still could run nicely when it is ready. We saw it almost triple last December. After forming a large base, it is moving higher.
CNBX – Another base in the marijuana sector, with price trapped under the 50 & 200sma. A break higher could start the run.
SPRWF – This does have a base that looks to be forming a rounding bottom, and this is caused by higher lows and higher highs.
CRON – For the past 2 days, CRON has landed on the 10sma. That said, CRON can drop to that 50sma and back test it, I see that type of pull back all the time. It would still be a normal pull back in a bullish set up, and could be bought if it holds as support there.
This should not be a dull week of trading, though it could get frustrating. Within a week of days, We have the G7 summit, FOMC Mtg & Rate Hike Decision, The U.S. President meeting with the leader of North Korea, and the ECB meeting Thursday. I guess we should just try to expect the unexpected, and be ready for whatever comes our way. Due to possible volatility, it may be best for those not in front of their screens all day to keep positions reasonable, manageable, and maybe smaller that normal, until certain sectors find a direction and not a choppy sideways path. Also keep in mind that all bullish market set ups can be hindered or delayed if that Sector begins to pull back.
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Enjoy your Tuesday trading!
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~ALEX
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