February 4th – What Next?
SPX – We still have a day 40 low from Fridays big drop, so this is either day 41 or day 1. We need confirmation of a low with a swing low & a move above the 10 sma. Friday everyone was bearish, suddenly today everyone was bullish. ‘Emotions in motion’, but the charts will tell the real story. If you buy near the lows, use a stop.
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NASDAQ – Notice that the NASDAQ looks better than the S&P or DOW. If the markets close above the 10 sma and confirm that we formed a dcl, it can be bought and we’d simply ride it with a stop under the 13 sma, just in case we get the dip into an ICL instead of the melt up phase. Please read the chart.
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KNOWING THAT WE COULD DROP INTO AN ICL TYPE OF DROP, THIS TRADE SET UP COULD BE SHORT LIVED & NEEDS A STOP.
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WTIC – Oil dropped to a new low again. It is very oversold, and we are due for a dcl here too, but it is still best to wait & buy a break above the 10sma. As you can see, anyone that tried to jump in & buy Oil over the past 20 days has either been disappointed or stopped out.
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GOLD – Gold dropped on Monday, I have mentioned that we are seeing choppiness at resistance. Gold is still above the 10 sma. A break below that 10sma would signal to me that this will probably continue to be choppy .
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GDX – GDX is choppy and is climbing a trend line so far. If you bought the Jan lows and are uncomfortable with the chop, you still have choices every day.
– You may decide to ride it out or even lighten up due to the choppiness & continue to ride it out.
– You can also sell everything & step to the sidelines & wait for a break out, or
– ride it until you are either stopped out at the Jan lows or a break of this trend line.
As mentioned before- I feel that a break of this trend line indicates further choppiness instead of a break out.
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SPEAKING OF CHOPPINESS & WHAT IT COULD LEAD TO, LET’S LOOK AT PAAS
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PAAS – In October PAAS was very choppy as it formed a cup. It then ran from $16 to $24…
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PAAS – In the recent set up, more choppiness could still be ahead, but it was still rewarding when it ran higher later.
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So the choppiness is frustrating in Miners. We bought a dcl, and that is part of the trading set up, those lows are still in place, but if it under performs and the choppiness is frustrating, it may be best for some to just sell and wait for another entry. Obviously you cannot control the markets, but you can always control your investments. Choppiness also weakens a leveraged position like JNUG. It is even possible that I will take a portion of my JNUG position and place it on another trade, until the choppiness subsides. I have done that in the past…
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I have some trade ideas below, enjoy your Tuesday trading!
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~ALEX
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We discussed many tech stocks when the markets were running hot, namely ZM, UBER, TWTR, CRWD, SQ, MU, AMD, PING, PINS, etc etc . I decided to revisit some of these and surprisingly, after the recent sell off, a few are still looking really good. If we get into the Melt up phase, these could really do well, if we roll over, stops will be triggered.
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ZM – I had mentioned ZM during this consolidation, but with the recent sell off, I am not in any long tech positions. ZM actually held above support, reversing at the 34sma, and popped out of the base by 15%. SO the Tech stocks may still have some life in them ( AMZN & MSFT Popped last week).
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I want to also say that If we were not facing a possible sell off in the General markets, these next 2 stocks would be recommended as a very strong buy right now. At this point, they are a buy with caution. BE SURE THAT YOU KNOW when their earnings are to be released, but these next 2 stocks look very bullish after that recent sell off…
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PING – Ping ran up almost 100% since October and pulled back to the 34 sma, simply forming a cup like base at the 34 sma. It is oversold and in my opinion, it can be bought with a tight stop under the lows. This looks ready to go higher.
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PINS – Another really nice looking recovery is Pins. I can picture a 1-2-3-4-5 move if the General Markets did that melt up higher. Note: Be aware of earnings, and this could be bought if it breaks that green line.
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AMD – AMD has been a strong semi stock. A pull back to the 34 sma & reversal ( if the markets run higher) is a buy the dip opportunity. I actually recommended this at $27 & it paused at $40 as another buy. Now it has paused near $50 as another buy. It would be best to wait for a close above the 10sma, but once it starts to trend higher, you can see that it moves rather steadily.
Notice : $27 to $42, then pause- $37 to $52. Pause. Next? $47 to $62?
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MU – MU is at possible support too, and after a long choppy sideways period for 6 months, it had a nice run out of that ‘abandoned baby’ from $45 to $60. It has now reached oversold, but it would be best to wait for it to start a move higher too, to show that it has buyers.
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TWTR – I know that TWTR releases earnings on Thursday, so there is a need for caution, but the set up is good. It didn’t really drop a lot last week, and is finding support along the 34 sma too. I owned it and thought that it would fill the gap by now, but it has chopped. Maybe earnings will boost it or kill it, but it is at support.
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UBER- When I first pointed out UBER in December, it was reversing at the 50sma. It had a lot of upside potential toward $44…
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And then it started to run straight up. If you bought low & still own it, just know that earnings come out Thursday, and…
UBER – This is a great set up after the recent market dip too. Again, be aware that earnings come out on Thursday. This is actually a bullish break out too.
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MJ STOCKS – Most are still acting correctly, but they are a tough ride, so lets just do a quick review.
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CGC – We see a drop to the 34 sma so far, but this COULD also drop to the 50 sma which is a bit lower. The RSI held up on the drop, but the MACD hasn’t, so I will allow myself to be stopped out if it continues to drop. ( I own this)
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ACB – ACB never broke out but it is bullishly crawling along the 34 sma and had a little volume pop. The MACD is rising as this was dropping, so it shows signs of divergence. I still say that if this sector is bottoming, the upside potential is big. ( I do not own this)
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A QUICK THOUGHT ON THE SMALLER JUNIOR MJ STOCKS THAT ARE POPPING & RUNNING
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I’ve been using the 20 & 34 sma while looking at these bases and we were able to make great gains in companies like CBDS, CNBX, NUGS, NXTTF, etc. Let me review…
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CBDS JAN 13th – THIS CHART was used for CBDS as it crawled along the 34 sma in bull flag fashion. I bought it is it started to pop after making money in a couple of others with a similar set up.
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CBDS YESTERDAY MORNING – Notice how it runs along the 8 ema. MANY ARE DOING THIS. I posted this chart yesterday in the morning in the live area to show a bull flag formed on the 8 ema. I bought this because of the bullish way that these have been running above that 8 ema. It was up 6% when I bought it and…
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CBDS BY THE CLOSE – It closed up almost 30%. It can be a rough ride, but I have been able to by these right at the 8 ema and ride them higher. This has now tripled out of the lows in 1 month.
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NUGS – I also caught NUGS and notice how it has been acting along that 8 ema. I bought & rode this higher, but I sell 1/2 if I get a BIG POP as seen here. Well, it dropped to the 8 ema and continues on (so far). For me, I have been trying to ride them as long as the 8 ema isn’t violated in their recovery.
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CNBX – This is CNBX. I no longer own it, but notice the 8 ema. I didn’t have to trade out of this one yet, it is still in recovery mode. CNBX is actually up 500% off of the lows. Even a small trade has paid off nicely, HOWEVER…
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NXTTF -WHEN I SEE THEM BREAK THAT 8 ema, it means to me that they will probably start to consolidate the gains rather than continue to climb. I first noticed that with BLOZF, and now I see it in NXTTF. So I am trying to teach myself along the way what may be a sell signal, and what may indicate that it can continue higher.
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I have mentioned recently that I was also watching EDXC, MMNFF, TGODF, and a few others that look to be setting up in constructive bases too. I cannot recommend these trades for everyone, since they move fast and you should be keeping an eye on them if you own them at this point. For those that are in front of their screens and like to scalp a trade, these are doing well.
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EDXC – I actually mentioned EDXC in the weekend report, since CBDS, CNAB, NUGS, CNBX, etc are all popping & continuing to run higher. I then mentioned it in the live area that I bought it. EDXC started to show bullish signs on intraday charts and then popped. I feel it may be ready to go higher too, and is a buy for those that like quick trades or these kinds of trades. Also…
EDXC WEEKLY – If you have been with me for years, no doubt you remember me constantly talking about Phido-bytes ( CBD treats to help dogs with anxiety and hip pain, etc in dogs) and the company under the ticker EDXC that provides them. I bought the long base in EDXC and rode it in 2018, then suddenly it started to break higher and we made great money on this one as it ran from 5 cents to 75 cents. Now it dropped from that parabolic run and is basing again. I bought it at roughly under and at 9 cents Monday ( since this sector is Popping).
TGODF – As a note: The slight pop in EDXC may or may not mean that it is ready. TGODF had a pop in mid January, it still looks great, but is also still just basing out. I really like the looks of this base, that MACD has climbed higher with the base, but it just hasn’t had the follow through buying yet.
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URANIUM STOCKS CRASHED, BUT LOOK AT WHAT THEY DID RECENTLY
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UEC – Was the recent selling just a shake out? It may be, because it appears that the entire sector did it. UEC gained another 8% Monday, and…
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URG – URG also crashed & recovered, gaining over 10% Monday. That looks like a shake out.
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UUUU – UUUU was up 15% Monday. These are looking like double bottom low bases that are starting to recover.
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CCJ – CCJ barely undercut the lows, but it too popped on Monday, so this caught my eye.
