August 23rd – Chart Set Ups
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I will have many trade ideas at the end of this report.
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TNA – I mentioned that The Russell 2000 ( RUT, IWM, and you can use the TNA) Looked bullish, and this was the break out. It was and is a buy.
QQQ – This is a copy from yesterdays report, Note: ‘ You could buy TQQQ’
QQQ – It is still trying to break out, and I actually see a good number of stocks setting up too, therefore I think that it is going to break out. TQQQ could be bought here and use the lower trend line or 50sma as a stop.
WTIC – This is a Copy from yesterdays report…
WTIC – It does look like day 42 was a dcl, with a day 4 POP. It is oversold and Oil can have LONG daily cycles, so this may run fast early, like the June DCL. Several Energy stocks actually look really good. I will have trade ideas at the end of the report.
XBI – The XBI WEEKLY is sitting on the lower channel line. XBI looks bullish on a daily chart too, so see the next chart.
LABU – I like this set up and I think that LABU is bullish and this break above the 10sma and upper trend line was a buy.
So at this point you can see that ( At least for the short term) RUT, IWM, TNA, QQQ ( Tech) , LABU (Biotech) , and WTIC ( Oil & Energy) all have bullish set ups. At the end of the report, I will point out some trade ideas in these sectors, since they seem to be set up bullishly.
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USD – It gets tricky here. The USD is due for a dcl and landed on the 50sma support Wednesday. A double top in the USD could ‘double bottom’ Gold. We’ll just have to see how this plays out and also we want to see if Miners can lead the way and resist any selling.
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GOLD – Gold did NOT surge after the FOMC Minutes, but it does seem to have closed above the 10sma. This does appear to be day 4 of a new daily Cycle, but it is dropping overnight as I write, so we’ll see if it holds. IF gold loses the 10sma, does that mean that this is Not the lows??…
GOLD – I just wanted to point out that Gold closed above & then under the 10sma a few times at the ICL of Dec 2015, so Wednesday nights selling isn’t concerning unless the lows are taken out.
GDX – Miners did not push above the 10sma yet, but this does appear to be day 4. I was hoping for a push to the gap after the FOMC Minutes, so that we could GAP over the gap and put in an Island bottom, but it did not happen. We are at the mercy of the markets here, waiting for them to prove themselves.
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A few individual Miners are starting to perk up, maybe lead the way. We can keep an eye on them and look for others too.
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HMY – Look at HMY, at 2:49 p.m. It had broken out higher. It actually looks bullish, breaking back above the 10sma and now it looks to have had a ‘shake out’ in the FLUSH stage of the sell off. That wasn’t such a bad drop, but it did have capitulation volume. I will watch this one if Gold dips and the USD pops, because I think that the Capitulation lows are probably THE LOWS for HMY.
HMY – At the close, it even closed above the 50sma.
NAK – Another risky one that most here are familiar with. This is a nice base now, it didn’t sell off to new lows in the GDX GDXJ FLUSH, and looks ready to break higher. It is a buy here breaking above the 50sma & trend line if it gets some follow through, but you’d need a stop below recent lows or where you are comfortable.
BTG – BTG also recovered from the FLUSH. I’m not sure that this is a ‘Buy’, because I dont really see a good sign of strength, but put it on a watch list. Over the 50sma would be a good sign ( or maybe a high volume spike higher.
PLEASE REMEMBER THAT ALL STOCKS HAVE RISK, MINERS CAN HAVE ADDITIONAL RISK AROUND EARNINGS. I RECOMMEND STARTING SMALL AND BUILD A SMALL BASKET, BE AWARE OF EARNINGS, ETC. USE A STOP, TAKE RESPONSIBILITY FOR YOUR OWN TRADES. GDX & GDXJ still have not closed above the 10sma 🙂 Just a disclaimer that everyone should know by now anyway.
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MANY ENERGY ARE SETTING UP, HERE ARE JUST A FEW IDEAS
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VOC – VOC looks like a bullish set up, flagging on the 50sma. Buy it here on the 50sma or wait for a break out. STOP under the 50sma somewhere.
LGCY – Here is an old favorite in Energy for your watch list. It has a large capitulation drop in May, and a double bottom low now with a slight undercut. It broke a downtrend ( I didn’t draw it in), but let’s see if it can get above that 50sma, that would be a buy. This one can run, we have traded it in the past.
PDS – CHOPPY, but it appears to be forming a larger base. It seems to be breaking out now at $4.00 and could run to $5.00 or more, based on the April-May run.
CDXS – This just recovered the 50sma, and looks like it may break out from this consolidation. Buy the break out above $16, but use a stop if it breaks out & drops back under that 50sma.
CNAB – This chart was in yesterdays report as another MJ stock. I have been pointing out these BASES, and how they ran in the past, and this looked ready to go. Notice how the Volume was building, I love that. And…
CNAB – It shot up over 42% Wednesday! SWEET! I sold 1/2, but this can just keep going, many have been. DO you want to know which one will be next to POP? I think it may be this one with a very similar set up…
CNBX – This is a similar set up, and you may not be able to see why I like this, let me zoom in…
CNBX – VOLUME IS BUILDING, I LIKE THAT . This is obviously just a guess as to whether it will POP or not, but this has the same signs that I was looking for in many of these before they popped, including CNAB.
OGRMF – I pointed this one out a couple of days ago. Slow and steady, I still like it to $4.50 and then it may drop to the red line.
BIOTECH CAN HAVE THEIR OWN ADDED RISK AT EARNINGS & FDA TRIALS, BUT THEY CAN HAVE THEIR REWARDS TOO.
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VSTM – I mentioned VSTM with this chart
VSTM – VSTM moved a bit higher and is still a buy
TRXC – This looks ready to break out, after losing & regaining the 50sma. Good volume came in on Wednesday. This is a buy here or on a break out, with a stop under the 50sma.
CVRS – Sitting on the 50sma, this also seems ready to break out higher. This set up could break & run from $1 to $1.50 fairly quickly if it remains bullish.
GNMX – Breaking out from a down channel. Let’s zoom in…
GNMX – It may now start to ride the 10sma.
IDRA, GALT, and ZIOP look similar and look ready to move higher. Here IDRA is pushing on the 50sma with increasing volume. THIS JUST RAN FROM $5 to $10. Strong potential.
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TECH STOCKS – MANY ARE SHAPING UP AFTER SELLING DOWN.
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PVTL – Pivotal Software looks to be breaking out here. It is an IPO and ran quickly from $15 to $31, and then pulled back into a consolidation. This MIGHT run quickly higher again, once it gets going.
IO – This is just more of a quick ‘trade’ idea. It could pop & run to the 50sma , or slowly meander higher, but often these will run to the gap ( or 50sma here).
PXLW – The set up is bullish due to the GAP higher on AUG 3 after earnings. It ran from under $3.25 to $4.50 that day. After dropping to the 50sma last week, it should run to $5 as an a-b = c-d move higher.
COUP – I Used to trade this, CAMT, SQ, SAIL, SGH, HUYA, IQ, QD, CASA, ETC. Some of those are setting up and coming to life again. This is in a channel moving higher and just broke from a small triangle ( Flag / pennant ) yesterday. SGH is VERY INTERESTING TOO.
VJET – I mentioned DDD weeks ago, and related in that sector are XONE & VJET. This looks like it is at the lows, and wants to run from this base. You could check this daily on a watch list. Let’s look at this close up…
VJET CLOSE UP – You can see that this did a gap fill Friday and then started to POP Monday, Tuesday, and yesterday. Earnings were released last Friday after the bell.
QD WEEKLY – This is one of those former IPO high flyers that took off after being introduced. It ran from $25 to $35 in week 1, and slowly died from there. Price may break out & move steadily higher from this wedge.
QD – The Daily chart shows that a break is starting now. It needs some strength though, I’d put this on a watch list and watch for buying to come in.
Note: This is a long list, do not get overwhelmed by it. Obviously you cannot buy all of them, but maybe you can make a check list and check them through the day. I get requests from our TRADERS for “current bullish set ups if there are any”. They want more than 1 or 2 picks if possible, and in more than 1 sector. Some of these trades can also be made while we wait for the precious Metals sector to show some strength. I have been doing this.
Some trades are ready to break out and can go on a watch list, others are breaking out and can be scalped for quick gains or buy & Hold as a swing trade and see what you can squeeze out of it if conditions become even more bullish. The ETFs TNA, TQQQ, LABU can be bought and watched with a stop. Raise that stop ( or use mental stops) over time.
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Enjoy your Thursday trading!
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~ALEX
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GOLD LIVE AT 7 a.m. – At $1191, spot price dropped below the 10sma ( Now $1190.5 on spot) and recovered it – so far. We have already seen that in Dec 2015, Gold closed above and then below the 10sma, so we’ll just have to watch this and make sure that the lows are not taken out near $1160, while that USD bounces around.
