Tuesday June 2nd – Mining For Profits
SPX – Day 11 and the S&P moved slightly higher on Monday. There has been no vilation of the 10sma, so a stop under the 10sma can keep you in the trade until it drops.
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NASDAQ – The NASDAQ was higher too , but it might be forming a rising wedge as it approaches the double top level ( Feb highs). 
Something to keep an eye on in the General Markets is that volume dropped off Monday in the S&P and NASDAQ. If that continues as it rises, it is usually a sign of a weakening rally.
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USD -The USD broke down from a consolidation & below the 200sma. It has a lower target that would re-test the March lows, but it could bounce from a dcl before it gets there.
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XOP – With a reversal on Monday, the ENERGY stocks look ready to move higher…
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APA is an example of a set up that looks bullish. After filling a gap from May 18, it reversed higher.
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OAS reversed higher after tagging the 50 sma. You could buy this with a stop.
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PVAC has been steadily climbing the 10sma, and many others have these same characteristics at this time.
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GOLD moved slightly higher on Monday as it rises from this triangle back test. Gold is a bullish set up, but Gold was the superior runner out of the March lows and has rested since that rally. SILVER lagged then and it is now the better runner…
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SLV when silver had a sharp drop on May 21, I drew this chart and mentioned that it could be exactly what we saw with the March mid-point Pause, so I expected a rally up toward that $17.50 Feb high on the SLV. as my first target..
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SLV as you can see, we have done exactly that and we are nearing that $17.50 area for the SLV. That was my first target, but Silver may not stop at that point…
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SLV so we look at $17.50ish as a measured move & resistance area, and then above and beyond that would be the $18.35 September 2019 highs. I will explain my thoughts on SILVER or the SLV later in the report, since I have been holding USLV from the $40’s area…
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SLV was back at the $15.50 area when I pointed out this important point – This is a major break out that was almost taking place, and now we know that we have that break out. That is long term bullish, so we don’t want to get too cute & sell everything when we expect a dcl dip. If this gets running, Silver often can get carried away, so I would say that we really want to own at least a basket of Silver stocks ( or Silver) at this time.
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GDX successfully crossed back over the 10sma. That was important to me, because it was starting to look a bit like a bear flag. Since GDX is oversold, it can run higher for days. 🙂
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GDXJ has been strong and is already over $1 above its 10sma. It’s at the lower end of a rising channel, so it also can run toward the top of that channel. Now let’s discuss something interesting about the Miners…
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IT SEEMS LIKE A ROTATION IS TAKING PLACE
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NEM – Notice that some of the GOLD stocks ran nicely ( like a 45 degree angel) from March to May, but have since dropped to consolidate those gains. NEM back tested the 50sma as support, so it may be ready for another run higher soon, but my point is this…
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EXK – Notice that some Stocks ( like silver juniors) went sideways for March through May as NEM, GOLD, AEM, etc ran higher at that 45 Degree angel. These juniors are now starting to launch higher. This gave us the ability to play the gold stocks in March to May, then we recently switched focus over to the Silver stocks as they began moving out of a consolidation, and this is working out very well.
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EXK – This was EXK pushing on the 200sma, so I added to my position and mentioned that in the trading area below the reports and in The recent reports. And then…
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Monday EXK was breaking through the 200sma with strong volume. Read the chart that I posted, this was a good place to add/ buy.
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EXK by the end of the day, volume was very strong and the 200 sma was taken out. This now actually has a target of $2.46, and it can extend beyond that.
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So we are seeing some good moves in the Miners, and the Silver stocks and Juniors are playing catch up in a big way as some of the ones that ran first began consolidating or resting. Now it looks like NEM, Barrick Gold, AGI, and others that ran higher in March – May could finish consolidating and put in another leg, since the GDX regained the 10sma. We could even rotate back into those for a 2nd leg higher if GOLD continues to run higher.
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These have really been great markets to make money in. We have traded many areas, but right now the Precious Metals sector rotated & continues running. Biotech s like NVAX, DVAX, IBIO, VIR, etc that we have traded are still running ( though choppy at times) , and the Energy stocks have consolidated bullishly and also looks ready to go again. Tech stocks have been a mixed bag with some chopping sideways and others bursting higher. It’s like that old game of musical chairs, but so far the music hasn’t stopped.
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I will discuss SLV and Miners a bit more below,
Enjoy your trading Tuesday,
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~ALEX
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SLV – So I wanted to take a look at a possibility that would prove to be very bullish. THIS IS JUST A GUESS WHEN I PICTURE CYCLES PLAYING OUT, so it is not an exact prediction, but a guide.
This would have our first daily cycle out of the ICL for SLV as the ICL to ‘1’ to ‘2’(Dcl).
The current run of the 2nd daily cycle would become the wave 3 if it extends and a back test would be wave 4 ( the next dcl).
That 3rd daily cycle would run to the August 2016 highs as wave ‘5’ peak. You would then have a 1-2-3-4-5 in 3 daily cycles. THIS IS JUST AN IDEA OF HOW IT COULD PLAY OUT, AND THIS WOULD GIVE US A REASON TO BELIEVE THAT AT LEAST HOLDING SOME POSITIONS AT ALL TIMES WOULD PREVENT ONE FROM LOSING POSITION & MISSING SOME UPSIDE.
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I had this in the weekend report: So I have been pointing out FFMGF as one that I have accumulated. Here it was bouncing from 14 cents to 17 Cents, and a break higher was looking like a real possibility. That was good because…
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FFMGF Breaking that down trend and 200 week ma in a bull market could lead to a nice upside rally. FFMGF is now 20 cents and did break above that 200 ma at 17 cents. A run to prior highs could be $1 over time.
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Suddenly FFMGF then shot up 20% Monday and closed up almost 18%. Many of the little juniors that chopped sideways in March through May are really taking off. see NAK, ELYGF, THM, MRDDF, and more…
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MRDDF – As mentioned: Many juniors consolidated or based out March to May, but are taking off higher now as the bigger gold stocks like NEM, GOLD, AEM, etc dipped down & consolidate.
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These kinds of bursts higher are not usually sustainable moves, but they can be the start of a real bull run that consolidates, and moves higher again later. ELYGF is a good example of that. It is not an easy BUY & HOLD, but it does pay off over time. Since we trade cycles, we would catch the ramp higher and sell some on the way up to buy again as it drops/ consolidates…
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ASM – We accumulated ASM as a lagger weeks ago as it went sideways too. It has Doubled in 2 weeks and popped another 17% Monday….
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ASM BIG PICTURE As you can see, it is just now breaking from a 1.5 year base. This has plenty of upside potential if we are in a multiyear Bull Market, and I believe we are.
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AUMN -I also like the BASE that AUMN is preparing to break out from. So my point is that many Juniors that were somewhat lagging have strong potential too.
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KL -Is similar to NEM, Barrick GOLD, and AEM, since it ran well in March to May. KL then dipped to the 50sma, but now it actually looks ready to start another run. It reversed at support and is pushing on the 200sma. I’d say that this is a buy after that dip, and NEM, AEM, etc may be ready to do the same.
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MAG has some nice upside potential as a SILVER stock that looks to be just starting higher again.
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MNDJF -Another junior that is bursting higher. I do not own this, but I would buy a back test of this base break out. This may just keep running now that it has broken from the base, and it also has great upside potential if we have entered a multi year Bull run.
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MUX almost doubled out of the lows, and then it dropped from April to May. It looked weak when it broke below that 50sma, but that ended up being a shake out. On Monday it broke the downtrend line and is now a buy. If Gold gets running from that flag back test, MUX may rally nicely. MUX is a Buy.
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USAS – I sold some USLV and bought some USAS as a slow steady (choppy) Miner that is now breaking that 200sma.
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SLVRF – I’ve owned this junior Silver stock, and I think that it has good upside potential after basing out here. The problem is that I grabbed this chart on Monday morning and it then went on to close up 15%+, so it is hard to recommend at this point. Let me zoom in…
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SLVRF – It churned sideways along the 50 & 200 sma , and now that it popped it can keep running, but one of the measured moves first targeted has already almost been met. A pull back in the base shown in the ABOVE chart may become a good buy later. I’ll point it out if it sets up properly.
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I was asked about AGI when it was at $8.31. This was a BIG RUN, but Monday morning it was under the 10sma, so I thought that it needed to prove itself short term or show a sign of bullishness. Without some bullish signs, it could just remain in this bull flag, choppy. AGI was rather neutral at this time, but a break higher could become quite bullish. Let’s zoom in…
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AGI did close above the 10sma Monday, so this may now be setting up to break out from that consolidation. You could buy it and wait & see, or wait for a break out & Buy that.
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ZM releases earnings after the bell…
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ZM FROM THE WEEKEND REPORT – I had recommended ZM near the 50sma in the past, but this has NOT been an easy ride. That said, it has doubled since February. We are at the highs now, so it could break out. ZM benefits from the video conferencing that it offers during time of ‘stay at home’ recommendations & ‘quarantine’.
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I then stated : “ZM honestly looks like it will be north of $200 on this run, but the weekly chart looks due for a pull back, so it may only be a short trade idea”. AND THEN…
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ZM – Boom, Up 13.75% & it is over $200, and now earnings come out Tuesday after hrs. If you own it, you need to decide what to do before earnings release.
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