Wednesday June 17th – While We Wait
SPX – With some upside gains, we are getting confirmation that the long trade is on track.
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JUST A THOUGHT : SPX – We could rally strongly out of a 1/2 cycle low here, but I also want to warn that a weakening market may just chop , Pop, and Drop sideways too, as it prepares to roll over into the next dcl. The 3rd daily cycle could then fall apart.
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WTIC – Oil moved higher Tuesday and I have been expecting a run to the 200sma. That can be resistance as shown with a crawl and break out – OR – A break out and back test.
XOP -Oil stocks were & are a buy, but they are moving a bit slow out of the gate. APA, OKE, MRO, CLB, AXAS, OAS, DNR, WTI, etc.
GOLD – We are just waiting for the break out. Until then, the chop sideways continues to bore us and try our patience. This really should break higher soon, and that might be an inverse H&S with the recent dip.
SILVER has reached oversold in the sideways consolidation. It quickly dropped and tagged the 200 sma and then put in a reversal candle. Was that a dcl? I would think so , but we need confirmation with a push higher. It is still buy-able with stops.
GDX has a downward sloping wedge. This is wearing people out, boring people to tears. A break higher is a Buy.
Some Miners aren’t waiting any longer, like DRD.
LGDTF also broke out Tuesday.
IN YESTERDAYS REPORT I SAID ABOUT TRX : TRX looks ready to make another move higher. It dropped to the 34 sma and reversed too. I did buy this one Monday, because a pop to prior highs is a nice % Gain.
TRX close up : I added to my TRX position yesterday when I saw DRD running. I like the set up on TRX, and it may be ready to go higher soon too.
AG is on support of the 50 sma and at the lows of a rising channel.
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Nothing has changed since yesterdays report. Most sectors look ready to push higher and we’re just waiting for the move to begin. I had several stock picks in yesterdays report, so I will just cover a couple of other ideas below. Enjoy your Wednesday trading!
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~ALEX
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I had been watching the Semiconductor sector before the Post Fed Sell off. I want to revisit that area since the General Markets dropped & reversed higher. These may go up with the markets.
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INTC landed on or right above support (again) and is oversold, so it can be bought in this area. It could make a run to prior highs.
MU popped nicely over the 50 sma in April. The problem is that it chopped sideways after that for weeks. Just when it started to finally take off higher in June, the FED DROP caused a back test with our Market crash. AMD also look like this too.
AMAT has been a bit of a steeper incline, but it has certainly been choppy too. If it dips down, it becomes a buy again.
I have had MNLO in a couple of reports, I bought it near the 50 sma. It has been a slow climber $1.75 to $2.25, but let me show you this…
MNLO s Bigger Picture shows that this could double if it keeps rising higher. MNLO gapped down in April and has filled that gap, but after reversing on the 34 sma, it remains rather bullish looking ( recovery).
YESTERDAY I WROTE: WBAI is trying to break above that 50sma. It did close here, so if you see what CGA, SEED, CHNR, JD, etc have done & want a Chinese set up? I like SXTC and WBAI, because they are near the lows, and in a base that could break higher.
WBAI – This was within the first hour of trading, it popped 30%. I hope that a few grabbed it, but I didn’t . I also hope you sold some on the pop, because it actually closed at the 4.13 area. It may be a buy again! 🙂
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BY REQUEST FROM YESTERDAY: SXTC – YES, I STILL OWN IT, IT IS STILL VALID. Yes it is choppy and is basing out, but I love the volume and I will be patient with it. This is Another Chinese stock with a great volume set up.
LLIT – THIS POPPED on Thursday when the markets crashed. I Put this on my list too . I almost bought this as it broke the 200sma yesterday. That can trigger buyers.
PLIN was mentioned recently and I think that it is still acting correctly too.
ARLP is another one that I bought and sold, but it has pulled back down near support and looks good . I think that it can be bought here, but it MIGHT drop a little bit more. When I am faced with that, I buy a small position, and add if it drops & REVERSES.
SOME OF THIS BASE TRADING IS NOT FOR EVERYONE:
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By request through email. I have mentioned trading some companies that crashed in March and instead of recovering, have Based out. Price is either Popping out of some of these set ups in a big way, or Chopping higher now after basing. Lets take a look at a few things.
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EEX was a buy 2 days ago. I missed it, but it is riding nicely above the 50sma. It doesn’t look like much, but this just did $2 to $4. IF I see this drop with light volume again, I might take a position. THESE SET UPS HAVE BEEN EXPLOSIVE when the time comes along.
So I have been talking about some of these longer bases over the past few weeks as bullish set ups. I get emails asking how exactly to play them. I will explain a little more, but Please know that MANY READERS HERE may just be away from the screens during the day, and waiting for Miners or other trades to make some gains is still a great trading plan. That is great, since these are really mostly for Short Term SWING TRADERS or SCALPERS , even Day Traders here.
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For the active traders: I want to show you something, and it is a reason that I have watch lists with these long consolidations or bases forming after our March sell off. I have watched & even traded INPX, SXTC, NAKD, VISL, GNC, BIOC, CHEK, and many more. IF I SEE THEM POP OVER RESISTANCE WITH VOLUME, I ACTUALLY MIGHT START A POSITION AND ADD IF IT KEEPS RUNNING, BUT ONLY FOR A DAY TRADE.
EXAMPLE: Yesterday I saw EVC and SALM break higher rapidly ( 30%) on my watch list in the same sector, so I jumped over to BBGI and saw it break the 50sma on big volume Too. I took a position, captured this chart, and mentioned it in the live area. After posting this chart at that time, I THEN WENT BACK TO ADD TO MY POSITION IF IT HELD THE 50 SMA…
BBGI … and when I went back it was up 44% just minutes later. I couldn’t add to my position and then it continued higher to up 80%! LOOK AT THE VOLUME JUST 30 MINUTES LATER. THIS IS WHY I put these stocks on a watch list all day. I know …
I know on JUNE 8 many saw me with NAKD , buying it at the lows of this flat base. The VOLUME was getting explosive. I had just bought and sold VISL and it exploded higher, so with NAKD I was buying at 67 – 72 cents avg and was holding it for 2 or 3 days actually …
NAKD The next thing I know it was up almost 300% , all in one pop the next day. Then I may sell 20% on a smaller pop, I may sell 1/2 on a bigger pop. I sold part and put it in GNCs long base , and then that POPPED too. .
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NAKD NOW: What happens from here after the Pop? They can still constructively move out of these bases and they still make excellent gains, but they can be choppy & hard to hold too. I actually think that NAKD could be a buy again, now or soon.
Some of these POP & DROP in a couple of days, so I do sell all or some of my position as it pops.
So again, for active traders, what I do is keep a watch list of the ones I’ve mentioned. When they pop with strong volume over resistance, you may get to jump in, ride it up quickly, but then sell 1/2 at the top, or sell it all. 1 day Pop of 70% or even 100-300% are not something that you want to ride back down.
AS ANOTHER EXAMPLE : INPX: I have mentioned this one several times, I own some. Is it on your watch list if you are a fast day trader or scalper?. I also still think that this and SXTC and a few others have the proper set up to break and run. Look at that volume…
INPX: Days ago I mentioned how I wanted to buy it if it pulled back, and it did, so I own enough that it is easy to keep an eye on as I still remain active in the trading area below the reports. IF I suddenly see this pop up 10% or so, I go to intraday charts or I might just add and watch for another big ride. If it just remains choppy, I can always sell my ‘add on’ too, and try again later.
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INWK : This was on my watch list, and after earnings last night, it popped 50%
