Thursday December 19th – So Close
SPX Day 11 – Though the SPX closed slightly down, this could be a bull flag and not top rolling over. We need more time, the peak is on day 11, price remains above the 10 sma and the MACD looks good.
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WTIC – Oil pushed a little higher after the Oil Inventory report, but sold off slightly into the close. Many Oil stocks did the same, so keep an eye on your Oil / Energy list if we get a decent pull back. This also could just continue higher crawling along the top of the channel.
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GOLD DAY 25 – Gold is now near the APEX & has been pushing along the 50 sma. That makes this SO CLOSE to breaking one way or the other, and we should see that break soon. I’ve drawn 2 possible paths. The MACD remains bullish.
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SILVER – Silver is also pushing on the 50 sma and is also So Close to breaking out of dropping down.
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GDX – I posted this yesterday live. This is a close up showing that yesterday GDX dropped, reversed off of the 50 sma, and even tried to close above the 10 sma. It was at $27.45 and if it could close there, that would be above the 10sma.
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GDX – GDX Did close at $27.45, so we have a reversal above the 50 sma again, and a close above the 10 sma. That is bullish looking to me. If it drops below that 50 sma, it would probably back test that triangles upper trend line again.
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HL – There are several Silver Stocks that just do not want to wait and see what happens with GDX or GDXJ. HL hit new highs again on Wednesday. 🙂
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USAS – I grabbed this chart to show that USAS was also putting in a reversal after dropping toward that 50 sma in the morning. It closed at $3.06 so the reversal above the 8 ema held.
EQX from yesterday – it remains a buy, since it closed only 3 cents higher than shown here.
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The Analysis that I have been giving in the Monday through Wednesday daily reports remains the same for the General Markets, Oil , and precious Metals. Nothing has really changed, but it does look like we are really close to seeing ‘something’ happen in the precious metals. The current set up is quite Bullish, and we are approaching the APEX of triangles. We’ll see if that sector can avoid a quick drop into a dcl, and instead break higher out of those triangles that have formed. Either way, it is a bullish set up, we just need a little more time. It looks like we are very close to a move one way or the other in Precious Metals.
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Enjoy your Thursday trading.
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~ALEX
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BE – Late October, BE was a beaten down Energy stocks under $3 that Popped above the 10 sma with volume. I mentioned that this set up has great upside potential.
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BE – After breaking from that wedge, it continued higher and broke the 50 sma. It spent 3 days crawling along the 50 as another buy or ‘add’ near $4. This was popping 15% / day and I had mentioned that it could make some GREAT Gains as it recovered. And then it ran even higher so I covered it a few more times, and then…
BE – It ran to $7 and started to consolidate for a month, dropping down to the 34 sma. THAT REVERSAL was a Buy or a good place to add too. Now it ran $5 to $7, then bull flagged, and ED pointed out that it broke higher again yesterday ( Thx Ed). This wants to run to $10+ in my opinion. It is acting correctly every step of the way. Buy it here or at the next dip or bull flag.
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I have mentioned quite a few Oil / Energy stocks and I am interested in seeing how they pull back if Oil dips to the lower line on that channel. They could become strong buys. Yesterday I mentioned that there are a few laggers or a bit slower ones, and they are acting correctly too (OAS, WLL, VAL, etc) .
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TECH STOCKS
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GOGO – GOGO popped on Wednesday and closed above that 50sma. It actually had almost 2 million volume by the end of the day. This could be bought here, and this is what I’d look for going forward. IF this clears that $7+ Area..
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GOGO – It may also make a break of the long term downtrend. They provide in-flight broadband connectivity and wireless entertainment services and it used to trade in the $25-$30 area. If these markets do melt up, this could recover along the way.
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SOHU – SOHU has formed a long base after a Capitulation Sell Off low in August. It seems to have found a floor at $10 and is popping with increased volume. If it breaks out, it can make some nice gains over time too. Some of the Chinese Companies may benefit from the Recent Tariff delay.
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YRD – This small double bottom looks ready to run to the 50 sma ( A trade $5 to $6 and maybe more). The divergence on the MACD is actually strong when you look at the low in early OCT compared to this Dec Low, and compare the macd. Again, Some of the Chinese Companies may benefit from the Recent Tariff delay.
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CREE – Semiconductor stocks have done very well. We have looked at AMD, TSEM, MU, and INTC & CREE were mentioned in the past too. CREE didn’t look quite ready, but it is breaking out now after building a 3 month base. Thx Rocky, for mentioning it in the live area. It looks like a good set up now.
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TWTR – TWTR built a base after crashing down in October. This was also mentioned in our live trading area. This might stall at the 50 sma, but if Twitter can get above that 50 sma, it can fill that gap on a recovery run. A GAP OVER THE 50 is also an ISLAND BOTTOM. A bullish development that is a Buy.
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WKHS – Workhorse broke a down trend and volume is slowly increasing. This stock has made some nice runs in the past. WKHS is a technology company providing electric mobility solutions to the transportation sector. As an American original equipment manufacturer, they also design and build high performance battery-electric vehicles including trucks and aircraft. I Bought the break of the 50 sma Tuesday, it has been on my watch list.
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MDR – I used to trade MDR, so it is on my watchlist, and this base caught my eye. I love a long tight base that starts to pop, so I captured this chart. It was near 88 cents when I noticed the pop & Volume…
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MDR – I didn’t jump in ;( and by the end of the day, it was up almost 40% at $1.08 with strong volume. This can just continue higher, but if it bull flags at the 50 sma for a few days or pulls back, I have it on my watchlist.
