Tuesday May 19th – The Easy Ride?
HANG ON FRIENDS, NO MATTER WHAT SECTOR YOU’RE IN, THE RIDE IS ALWAYS A BIT BUMPY 🙂
SPX – This is day 2 of the 2nd daily cycle, and unless this starts chopping sideways rather quickly, it looks bullish and strong. Buyers could use UPRO, TQQQ, SOXL as leveraged vehicles and see how this plays out.
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SOXL is a buy – and I believe that it may do well, at least short term. CREE broke out yesterday, AMD is a CUP & HANDLE ( Chart at the end of the report) MU and TSEM look good too. We bought SOXL & TQQQ at the lows, and SOXL went from roughly $50 to $150 on the first run( I sold early) …it has coiled sideways here.
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WTIC – Oil continues higher on day 19 of a possible 40+ daily cycle. As scary as OIL got, we caught the lows on many Oil stocks weeks before it bottomed and OIL when it bottomed. XOP ( Gush) And OIL Stocks are a buy again.
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XOP – OIL & ENERGY STOCKS ARE BULLISH.
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GOLD 1 HR – Gold had a sudden plunge if you were watching intraday. It is possible that Gold is just going to back test that triangle , maybe even in a-b-c form? – or –
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GOLD 1 HR – This kind of a back test may even be complete with that 1 day drop.
GOLD – I must say that when I see a drop like that, it looks almost like a bearish engulfing and has an ugly look to it, but…
GOLD – Again, it may just be testing that break out. We’ll keep an eye on it, but this is daily cycle #2 and should continue higher out of a triangle before a dcl dip..
THIS LOOKS VERY SIMILAR: IT WAS BULLISH AFTER A ‘PAUSE’
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GOLD 2019 & Now – Do you remember when I compared these triangles weeks ago? Well that 2019 Triangle broke out & back tested. It got choppy for a whole week, BUT individual Miners did their own thing ( And we saw that Monday too).
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GOLD WAS ALREADY AT OR ABOVE RECENT HIGHS, AND MANY GOLD STOCKS FOLLOWED. RECENTLY I MENTIONED THAT I WAS MAINLY INTERESTED IN SILVER STOCKS, BECAUSE THEY MIGHT/SHOULD PLAY CATCH UP WHEN SILVER DOES. THIS IS WHAT I SEE HAPPENING NOW-
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SILVER– Silver has been strong, working its way through the overhead 200 sma & resistance levels. It was NOT YET at prior highs like Gold was.
GDX shot up to Prior Highs and continue to chop higher. See the opening theme picture, right? Monday it Popped higher and then sold off, so this is still a choppy run, but it doesn’t mean that the run is over. What a beautiful long term chart.
GDX – Zooming in we see a channel and the drop Monday may just play out in choppy fashion, rather than a deeper pull back. What if it breaks the lower channel line? We see that all the time, in fact, notice what NSRPF did after breaking out the lows…
NSRPF – After a quick break down of the trend line, NSRPF shot straight up. That is a ‘shake out’ that stops people out and leaves them behind quickly. Choppy trading is when a ‘tight stop’ works against you. I am just pointing this out so that we are aware of the fact that GDX could do that & still be bullish. We’ll see.
As mentioned, Many GOLD Stocks are already well above prior highs. They could actually pause , drift , or even dip. I will admit that when I saw AUY do this large bearish engulfing Monday, it did NOT make me happy. Read the chart.
3 charts of NEM: Last week I mentioned that I was seeing divergence in our leader NEM too. So…
NEM – I feel that some lagging Miners may play catch up, and others that are a bit extended may begin to become more choppy or even drop. I drew this simply as a visual example, not an exact Prediction.
NEM – If you have been here at Chartfreak for a while, you also know that a “Running Correction” is Bullish and slants higher, but makes people nervous with occasional drops, even on good days. We might be seeing that.
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IAG is also at prior highs and it too gapped open and engulfed Fridays candle. That is a bearish engulfing, so we’ll see what happens here…
IAG – It may just tag the 200sma as a back test.
Meanwhile, you can see that many of the Silver Stocks acted differently, more Bullish Monday.
HL gapped open, filled the gap, and recovered, holding 5% Gains. Read the chart.
ASM -I called this a buy and said that I bought it Thursday at the reversal on the 50 sma. It also gapped open, filled the gap, and recovered up another 9%. This is another example of a lagger that is playing catch up in a big way.
AUMN was also lagging & recommended last week. It was up 7% at the close.
SILVERCREST – This has been a great run, right? You can see it ran from under $3.50 to $9 now. NOW LOOK CAREFULLY AT THE PRICE PATH. It wasn’t straight up at all, it had 3 & 4 day pull backs. This was very choppy and rough, but it is up over 150%, so IF we pull back here and there in GDX GDXJ or NEM, IAG, and AUY, it doesn’t mean that it is bearish. It also broke the 10sma several times on the way up.
FSM is another Silver stock that continued higher ( Though this MIGHT be a topping candle). FSM could become a buy opportunity if it back tests the 200sma.
I still own SVM – It is slow and choppy, feels disappointing, but it is just a choppy ride at this point. It is still up $1 from the 50 sma buy point. I would hope that the 200sma holds as support & we see a reversal, but this could drop back to the 50sma too.
SIDENOTE: CDE was pointed out many times with charts like this as a BUY ON SUPPORT. I bought it and mentioned that I like this set up.
CDE– I wanted to show you the progress, because that set up where it sits on the 50sma is now similar to MUX
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MUX – Similar to CDE, MUX is crawling along the 50sma and can be bought with a stop close by, under the 50sma. So MUX can be bought as a laggard with a reasonable stop.
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The action in all sectors remains bullish, though we saw some Bearish engulfing candles on Monday in some Miners. I had to dig in and look at what might be happening, and it seems like normal chop in a Bullish Market at his point. As seen above, some Gold stocks that ran first dropped, but many Silver stocks still closed higher and look good. I am pretty heavy in USLV and JNUG, so I sold a part of my JNUG to add in Energy and a Coronavirus stock.
Just to be clear, when I wrote that I Sold ‘some’ of my JNUG in the live trading area ( Below each report) , some though I was saying that it is time to sell. Note: I DO still own my Silver stocks and My USLV & a good chink of JNUG. I am a trader, and to avoid having too many open positions, I often lock in some profit to buy low on my next trade. All sectors continue to look Bullishly set up at this time.
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I have a few ideas below, if we get a bit more of a pull back , I will find more low risk entries in Miners. ENJOY YOUR TUESDAY TRADING!
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~ALEX
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MJ STOCKS ARE BULLISHLY SET UP AND THIS IS WHAT I MENTIONED IN THE LIVE AREA YESTERDAY. You can look these charts up if you want to see some nice charts. ‘AXB’ was a typo – it was supposed to be ‘ACB’
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VFF – So I bought VFF since it hadn’t taken off yet, and I grabbed this chart. It closed up 20%, but is still a buy in my opinion.
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MJ ETF – Read the chart. I would look for laggers like VFF unless this gap fills in the next few days.
VIR – Those corona stocks NVAX, VIR, CODX, MRNA, IBIO, NNVC, etc are popping and running. VIR popped from the long base like many others ( up 25%!) . NVAX has really done tremendous since our buy near $8 ( And then most of us sold in the teens ) It is above $60! 🙁
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MITO -So I took a position in MITO midday . It has been steady from under $1 to $2.16 here, and I’m hoping that with earnings released last week, it can start to play catch up by running out of this base.
MITO – The BIG picture is that this was a company that ran from $6 to $14 before the corona trials. It has big potential if it can get going and again, Earnings came out May 7. It can still be bought as part of this base,but it may be a BUMPY RIDE.
CLB up 14% – our Oil / Energy stocks are bullishly set up .
ENERGY LIST GAINERS – This is a partial list of some of the ones that I shared with you over the last month. These have made good gains, and as you can see, they POPPED yesterday after consolidation and dcl .
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PVAC – So to buy one, you need to look for some that have based/ consolidated sideways and are not yet extended. PVAC looks good, but these are choppy and difficult for most traders ( This has chopped from below $6 to $7+ in this sideways action. It is a rough ride at times.
DNR – I bought DNR yesterday when I sold some JNUG and it dipped to the 50 sma and then started to move higher.IT is still a buy in my opion ( I may add) since this can double vs a sell under recent lows. Risk / Reward.
AMD – This looks reedy to go. Usually we’d buy a break of the upper line, but Buying at the 50 sma on MAY 1 would have worked too. I think this looks ready to break higher.
