Friday April 3
DJIA – The General Markets reversed higher at their 10sma on Thursday. Most people that took the trade would still be in the trade, using a stop loosely under the 10sma . In yesterdays report I said…
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SPX APRIL 1 – At this point the bounce was a 38.2% Fib bounce. A bullish view would be that the drop to the 10sma hold price and then we could get an a-b-c bounce off of that 10sma, and another leg higher.
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SPX APRIL 2 – The drop was also only a 38% drop of the entire move off of the lows too.
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VIX– I also mentioned the VIX and it could not get above that 10sma. Being rejected there has kept the General Markets alive.
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WTIC – Oil FINALLY popped out of the lows, so we have a day 38 low. We have been watching for this with Cycle timing being in the right area for a low to form. This was a 25% pop and the trigger was a headline saying that Saudi’s and Russian administrations are in talks to reduce production.
The XLE, OIH, and XOP all popped with Oil too. Many have formed bases and they should move higher as Oil has some follow through out its Lows. I discussed several oil stocks in Yesterdays report, I will discuss more below at the end of the report.
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GOLD – Days ago when Gold dropped over $40, I mentioned that this could form a Bullish Inverse H&S...
GOLD DAY 13 – We do have a Bullish Inverse H&S and Gold moved up nicely off of the 10 or 13 sma. This does look Bullish. Think about this too : If Gold breaks above the highs 5 days ago it will most likely become Right Translated.
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SILVER Day 13 – Silver moved nicely higher off of the 10sma too. It is about to make a day 14 or 15 day high for this daily cycle.
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GDX – We have a day 8 high and this is day 13. A break above day 8 would become even more bullish. I don’t love that Gold & SIlver were up nicely and GDX sold off into the close, but remember this…
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We did have a Beautiful Monthly Reversal at the end of March. And remember this ….
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And remember this: On March 17 I pointed out that we had extreme Rail Road Tracks that are rare. I was taught that those are a ‘Buy’ because they indicate a reverse in direction and the lows usually are in place for a while. So we should be seeing Miners remain above the lows.
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– Thursday we saw the General Markets reverse higher off of the 10sma after a 38% pull back. One thing that I didn’t like is that some of the stocks that I have been following are still under their 10sma ( AMD, MU, SQ, UBER, etc).
– Oil surged within the timing for a DCL, with the news of Oil production cuts.
– Precious Metals also reversed and started to move higher in what should be another leg up. ONE CONCERN that I mentioned in this sector is the thought that the Coronavirus could infect a couple of workers and cause an entire Mine to have to shut down production for a few weeks. We are trading in different times & circumstances these days.
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Today is Friday, so it is the last trading day of the week. That may come into play when you decide how many positions ( or what sector) you’d like to have open heading into the weekend. I have a few chart ideas below too.
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Enjoy your Friday trading! .
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~ALEX
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LGDTF reversed at the 10sma Wednesday and climbed higher on Thursday. It is now one of many that has a higher low, good volume, a MACD cross and a favorable RSI reading.
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PAAS – PAAS did a gap fill and regained the 10 sma, but this was at 11 a.m. It actually dropped back down to the 10sma by the close, so it is actually $1 cheaper now. I don’t know why it dropped, but If it moves higher it could be a good buy.
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SA – I bought SA looking for a 2nd leg higher . The first move was big, more than 100%. This was also captured in the first 1/2 hr of trading & actually closed at almost break even. I still own it, but I don’t want to see it close under that 10sma, or something may be wrong with it. Right now I see an inverse H&S.
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HBM continues to have good volume Pops as it rides the 10sma . This is a copper stock and so far it looks good.
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With OIL close to a bottom, I discussed energy stocks in yesterdays report. They have been basing & I mentioned that they can be traded (maybe quickly or short term). Some started Popping 30-50% Yesterday. I discussed PUMP, CLB, OKE, PVAC, MRO, VLO, WTI, ERF, etc etc. These are FAST & Difficult to trade at times, so please understand that. These May NOT fit your trading style. You may also want to keep positions SMALL. These small companies can also go bankrupt, blah, blah, blah… You have been forewarned 🙂 Let’s look at a few more.
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PVAC – After the first hr of trading I was pointing out that this little pop was really a 45% gain.
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PVAC then pulled back and was ‘only’ up 30%. You can see the upside potential if this gets running with Oil.
PUMP – I owned PUMP and it popped 25%. I tried to sell 20% of my position near the close and accidentally Bought that amount near $2.70. I decided to hold it for now, since it seems to be basing along the 10sma.
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VET : I didn’t have this on my list, but ED mentioned it in the live area , saying that he liked it because they still have a dividend (maybe that’ll attract buyers). You can see the potential if it even just does a gap fill. It, like others, has already doubled off of the lows.
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BTE – I was looking at the flood of volume coming into BTE midday.
By the close BTE had much more than normal volume and was up 25%.
MRO – I like MRO’s base, but this is a good example of how these can trade. If you bought it Wednesday, HERE at 10:45 a.m. Thursday you see that it is up 16%. Thats a nice looking base and it broke the 10sma, but by the close…
By the close MRO was ‘only’ up 11.22% and slightly under the 10sma. I still think that it has great potential, but if you bought it while it was up 16%, you now are in a red position. That is hard to endure if you go in too heavily, so be careful with these. MRO does still look good. Upside potential with that gap is good if it runs with Oil.
ERF popped and then dropped too, but still closed up 15%.
You can see that if you bought these Wednesday, they were good %-Gainers Thursday. They may also be good %-Gainers going forward if OIL has bottomed and some of these move higher with Oil. These are very beaten down & oversold, but also a higher risk trade.
