March 27th – Market Action
SPX – With a peak on day 9, price dropped, and then barely recovered the 10sma Tuesday.
SPX WEEKLY – I want you to see something that I have pointed out in the past. Notice that prior fast vertical moves out of an ICL did not always just keep running straight up. More often, they reached prior highs and went sideways and became quite choppy. Do you see it? If that happens, it could form our shoulder ( H&S). Something to watch for because…
TRAN – The Tran is still struggling so far.
TRAN – I can paint it bullish like this, but this isn’t really a ‘bullish descending wedge’, it could be more of a triangle that can break up or down.
RUT – The RUSSELL 2000 failed as it fell below the prior March lows. The MACD is weak. Nothing changed here yesterday.
RUT – In fact, we may be building a choppy downward sloping channel if it doesn’t break out higher soon.
These markets still look weak, even though they may bounce around. Often things take time to play out, so we’ll see if this plays out Bullishly, stays weak and choppy, or builds a right shoulder of the large H&S Pattern.
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WTIC – Oil moved higher Tuesday, and the Oil inventory report is released on Wednesdays. Oil still looks like it wants to tag the 200sma, which has been my original thought, however…
OIH – However OIH, XLE, and XOP all sold off Tuesday. Let’s see what the Oil Inventory does for the Energy sector.
GOLD – Gold dropped yesterday, but that changed nothing. It’s up one day, down the next, but is slowly marching higher as seen here.
GOLD – Gold is up one day and down the next, but so far the short term trend has been higher.
GDX – GDX actually moved to a new high on day 16, with Gold & Silver down.
I wrote extensively about what I am seeing in the weekend report and in Yesterdays report in Precious metals. I have seen similar action in past bull moves. What do I make of the Miners being up on day 16 when Gold was down? Read yesterdays report. While the possibility of an ICL coming on month 8 was pointed out in yesterdays report, there is also the possibility for continuing a bull move in Miners above the 50sma and the trend line. We’ve seen both in the past. 🙂 Just stay Frosty my friends, the markets are always full of surprises.
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Have a great Wednesday trading day!
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~ALEX
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EDIT: This is GOLD as I release the report Wednesday Morning. It actually looks Bullish with a rising MACD on a flat base.
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GG – GG started to turn green (NEM looks similar), so I posted this chart as a short term buy , or even a possible BUY & HOLD. It broke out higher shortly after I posted this, but not in such a big way that this is now running away. GG & NEM are still a buy today if you want to own a Miner with a tighter stop..
LODE DAILY – If you look at a 3 or 4 month chart you can see slow but steady progress in LODE ( a precious metals miner). SOG was discussing the ‘Pops’ in LODE weeks ago in the live trading area, and you can see that it actually began 2 months of riding the 50sma (Bullish). Last week it popped above the 200 sma and I bought the pullback for a longer term BUY & HOLD attempt, because …
LODE WEEKLY – Take a look at the weekly RSI. It is nicely above the 50% mark, FOR THE FIRST TIME IN YEARS. Take a look at the 1 year base. If one can remain patient and just ignore the wiggles, and if Gold is in a new bull market, this could be one of those 500% or 1000% + Gainers easily. A ‘small’ reasonable position could do well, and you can even add if it drops back to the 50sma.
LODE- NOTE: I bought the bullish set up, but Just to prepare you for ‘anything’, you should know that this may still chop sideways. It may require patience. Especially if we do see Gold drop to an ICL in the next month, this can lose the 200sma and drop back to the 50sma, giving you gains and taking them back short term.
HEXO – Yesterday I mentioned in the live trading area that volume was very big in the first 5 minutes for HEXO, so I added to my position before it moved up another 8.5%. This could do a big a-b = c-d to about $8.30+
ALEAF – I captured this chart 5 minutes into trading yesterday. It reversed at the 200 sma. That has been long term support, so this could be bought with a stop if someone wanted to own ALEAF ( Infused CBD products).
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URANIUM STOCKS STARTED PROGRESSING AGAIN YESTERDAY
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