Thursday – Last Day Of The Trading Week ( U.S.)
SPX – On the verge of breaking that down trend line, but so far it was a very small move Wednesday. That small price move is very similar to the last time we were up here. It is a bullish looking Wedge though, and should break out & confirm that a dcl is in place.
XOP – Oil was slightly green, but the XOP dropped as it was rejected at the 50sma. So this looks bullish and bearish, but I think it should turn out Bullishly. Why? The evidence says…
1. It’s very Oversold
2. I see a Break out and back test of a Bullish Descending wedge
3. Cycle timing is now late
GOLD dropped sharply at the open, but I wrote in the live section that “I am watching that 10 sma.” It bounced right off of the 10 sma and closed well off of the lows. No damage was done, and if this is day 18, this is leaning toward being a right translated daily cycle.
SILVER looks like an inverse H&S that is still climbing up the yellow 34sma. No damage was done here either.
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FROM YESTERDAYS REPORT : GDX – We broke out and with a stop raised to the 50sma we can just watch and see if the gains keep adding up. Many Individual Miners look VERY good.
GDX dropped with GOLD to back test that break out & then recovered as the day went on. No damage with Miners.
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Today is the last trading day of the week for those in the U.S., so enjoy your long weekend. Everybody else gets to enjoy 2 more days of trading, and the trading has been pretty active lately. The Genera Markets look to have put in a dcl, and that may be confirmed with a trend line break today. Oil stocks could become a buy this week or next , since the timing is getting later there and a wedge broke to the upside. The Precious Metals dipped and recovered yesterday and no damage was done, so that sector remains Bullish. I will discuss a few things below, and I’ll try not to mention how much I like the set up in CHFS & CHEK again… 🙂
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Enjoy your Thursday trading!
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~ALEX
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AG – Broke out Tuesday and so far it is just a back test and it recovered into the end of the day. Miners still look good.
IAG had a big break out and took a rest on Wednesday. It could even put a handle in place and be fine, but it doesn’t have to. Please read the chart.
So after looking through many charts of the Miners, they look normal and remain bullish.
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Oh No, CHFS just has to be discussed again… 😉
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CHFS – After selling off in the morning and into Midday, Volume came in on the upside again, and this is STILL looking like it wants to break out higher. It remains inside of a triangle and the apex is very close now. .
CAN CHFS or CHEK BREAK DOWN? Yes, but it would probably be a false break / shake out – because the volume Pops are stronger to the upside. That said, BAD NEWS or A PUBLIC OFFERING can ruin any low priced chart, so I Stay Frosty, but so far this is Bullish
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CHEK is above the 50sma and has closed there for 3 straight days now as volume begins to increase. CHEK may be ready to break out from its base too.
I saw BNGO break out from a downtrend & then stall, but then volume came pouring in on Wednesday and this looks really good. I bought it for a short term trade with a stop under recent lows.
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BY REQUEST: I was asked if I would explain how I personally play CHFS or CHEK. I will briefly cover that at the end of the report as a ‘Lesson’.
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A few Solar stocks really took off, so I want to look at a few here
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SUNW – This popped 100% at one point, and closed up 72%. I looked up WNDW and it was up 29%, so I tried to find laggards that may look ‘Interesting’.
SOL was reversing right off of the 34 sma and was only up 4% when I looked at it. The volume was very big though, so I bought it and it took off up 13%. It then sold off to up 7%, but I still like the set up here so I held on , and …
SOL– The upside potential looks good if I can get some follow through.
JKS – is a solar stock that I have enjoyed in the past and it also looks good ( I didn’t buy it, but I may have if I was holding less positions). Other solar stocks to watch list are SPWR, CSIQ, FSLR, ETC.
RAYS REMINDER: COPPER (THX RAY!). We discussed Copper stocks a while back, and they have been running very nicely. These could have been BUY & HOLD maybe some did? Lets take a look..
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HBM – This was a BASE with volume, so it was recommended as a buy under $2 on the 10sma…
HBM – It then took off with good volume…
HBM – Well if someone bought it with a long term view, they’d be at $3 and this actually looks like a buy breaking from this consolidation.
TGB June 30 – Here we see TGB with the same set up as HBM above. This looked like a buy, and…
TGB dropped and recovered, so it acted like many miners. This back tested the 34 sma and can be bought with a stop under that area.
I have had a lot of stock picks in the last 3 or 4 reports, so I am just going to leave this here. I do still like CHEK, CHFS, SXTC, AHPI, BNGO, etc, it just takes time to see if they remain bullish. If they POP & RUN, the patience will pay off. Miners also look good, there was No Damage in yesterdays dip & recovery.
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Enjoy your Thursday trading ( Friday too for the rest of the readers), and enjoy your weekend! Stay Safe. 🙂
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BY EMAIL REQUEST: I was asked if I would explain how I personally play CHFS or CHEK. I will briefly cover that here as a ‘Lesson’.
1. If I see a base that has strong volume at the lows, I start doing quick research. I search the news quickly to see if I can see why it is popping with buyers.
2. I may check and make sure that they have cash on hand to complete tests (Covid) , drilling results (miners), etc- so there is less chance of a public offering.
3. If I like what I find, seeing that it has good news, good cash flow, etc , I may put as much as 5% of my account in AT THE LOW OF THE BASE.
– It is important to buy low when you ride a base. Buying near the lows means that the chop is “gain, break even, gain, break even”. If you just jump in & buy the top of the base? It goes from ‘Break even to loss, even to loss’ as it chops.
– I have 3 screens open and I on 1 screen I usually watch these daily & even through out the days. I am watching for %-Gains on CHFS & CHEK for example. If I see them up 5-10% I am glued to their charts. Or I set an alert. If CHFS crosses $0.60 for example, I MAY ADD QUICKLY. See the chart.
Then as you may have seen when I owned VISL or NAKD – they CAN just explode higher out of these bases. I try to QUICKLY add as they break higher. If I see CHFS cross 60 cents ( I add), then I see 70 cents, then 80 cents. At this point even my 60 cent addition is up 30%, so I may cut that addition there & ride the rest. If it is REALLY strong, I let it ride. ( See the chart) …
I let the rest ride, and with VISL , it was up 200%, 300%, 400% , NAKD was up over 100%, 200%, 300% too, so eventually I just get out. Read the chart.
VISL: Yes, it feels like its going to $10, but you just HAVE TO SELL the big Pop, and keep selling on the way up.
I know you saw me buy this at 67 cents to 72 cents in the base, and it got BORING! Then it exploded.
