November 17 – EV and Energy Rockets
SPX – After the General Markets popped and reversed last week, a back test that was expected. This week has started off with a continued run higher out of that back test with good volume, so the markets remain bullishly set up.
WTIC – Oil also broke out & back tested Friday and on Monday it reversed higher. I have mentioned that now the oil stocks are bullishly set up and last weeks dip could be considered a ‘buy the dip opportunity’ if you wanted to get into this sector.
THE XOP gapped away Monday and most of the Oil stocks that I have been mentioned ( See MRO, VLO, AROC, APA, CVI, LPI, etc etc ) Gapped away from last weeks pull back too. I have a feeling that this gap Will fill, since most of the Energy stocks I was watching gapped up on lighter volume. That gap fill could offer another buying opportunity.
GOLD may be mimicking the lows of the last dcl in the red box, or this still could be a Bear flag. With Cycle timing, we should be nearing the end of this consolidation soon and selling did dry up so far after that large slam down day last week. If we take out those lows, it may just be a quick drop & reversal.
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SILVER actually looks like it is trying to push higher and some of the Silver stocks started to perk up again too. We’ll see what happens from here, but CDE & HL recovered the 50sma and moved nicely higher Monday.
HL – This is what I am discussing above with HL& CDE, so again several Silver stocks are still looking bullish.
GDX was down 25 cents and is still under the 50sma after that pop & Drop false break out.
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We really aren’t seeing any Big changes since the weekend report, so this was more of a review. What we did see what several explosive moves in the EV, Clean Energy area, so I want to discuss a few details in that area below.
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Enjoy your Tuesday trading!
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~ALEX
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WE ARE SEEING EXPLOSIVE MOVES IN SOME OF MY RECENT STOCK PICKS, BUT WE ALL KNOW THAT EVENTUALLY THESE MOVES CAN END QUICKLY. WITH THAT IN MIND, I WANTED TO SHOW YOU AN EXAMPLE OF A MULTI-DAY RUN with massive gains using CBAT as my example: Notice
1. This popped for 2 big days in September and then dropped to the 8 ema
2. It then popped & ran again for 3 days into October and then put in a LONG consolidation.
3. This time the gains were much bigger and we are on day 3.
4. These are the long consolidations or bases that I often find make Explosive moves and that is what CBAT just did. $2 to $11 this month.
I am using the above chart of CBAT to show you that at times these quickly POP & DROP, but during very bullish times they can race higher for a few days. Since it is hard for many people to know which will pop & drop in 1 day or which will last for a few days, I always admonish that people sell ‘some’ on the way up, but also try to let some ride. So now lets look at recent set ups that are popping…
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SUNW On Friday : I mentioned that I was buying SUNW for a few reasons. 1. They put talks of a merger on hold and 2. When they mentioned that SUNW started to break from this Long Consolidation. It popped 20% and pulled back here to up 11%, but I still thought it was ready to go a lot higher based on the September move. SUNW looked similar to CBAK and also Solar stocks have been very strong.
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1 day later and SUNW looks like just another small pop, but this was actually a 25% pop on Monday and it could keep going like CBAT did. It is hard to recommend entering here, because it could also Pop & Drop with a back test of the break out, but if you entered it with me, I’d hold on. I even added Monday morning.
WWR 11 a.m. – I have been pointing out WWR for several days above the 50sma. Many of us bought it there when it was $3.80, so even though WWR slightly lost the 50sma Thursday, the 50sma was rising & price never stopped us out below $3.80. It started to run Monday and I posted this and said that I added since it broke the Squeeze play between the 20 & 50sma…
WWR closed up almost 50%. Could this run like CBAK? Yes, it could go for 2 or 3 days too, but again how do you recommend a stock up over 50% in 2 days? I can’t unless it pulls back, but if you are riding it like me? I’d take some profits along the way, and let some ride since this may do another massive run ( We caught this last time too in October and gains were enormous)!
BLNK 10:30 am -I pointed this out last week & also with this chart in the live area Monday, saying that I added to my position. They released earnings and stalled last week, but it opened at $10 on Monday, dipped lower, and then started to run, and with this sector is on fire, I said I added. It was a buy even at $10:70…
BLNK closed at $12:19, up 25%, and kept running after hours. This is not even at the prior highs and I expect it to get there.
Now that I have been able to show you why I like these so much and how I play them, let’s discuss a few stocks that may be just starting to run in a similar manner. The EV / Battery / Solar / and Clean Energy sector has been extremely Bullish.
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LAC is starting to push higher from this consolidation (again). This one is tricky because it has popped & dropped in the past, but with the sector on fire, maybe it’ll get some traction this time. I bought this and got stopped out with that dip recently, but a small paper cut will not keep me the potential here. It regained the 50sma and this set up could possibly run from $10 – $20 plus here. Look at the Blue Line. That was $7to $17 in days.
OPTT popped and dropped Monday, but I think that may be a gift and I added to my position here too. This one dropped on a day when the sector was running, so it is possible that OPTT chops along that 50sma, but that’s ok, I may add if it does. It looks ready to go to me. OPTT ran roughly from 75 cents to $3.75 recently. Big Gains and dropped back to $1.50.
MAYBE NETE? – Nete has an Electric Vehicle too, but the earnings release Monday morning caused it to drop during yesterdays excitement. To be honest, this drop looked mild so I posted this in the live area as it dipped to $7.25. It closed higher at $7.35 and volume was very light, so this might run later this week. Big potential can be seen on the chart. Now let me show you something else…
I often look for a lagger like Nete, and as I sell other big runners, I flip that money to the next one that is starting to run. For example, say I sell 25% of my SUNW, then 25% of my WWR, then some or all of my CLNE by now and use those profits to buy one that is lagging like NETE or LAC IF OR WHEN it reverses.
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CLNE was a buy last week and I mentioned that I entered it in this area.
CLNE popped from that $2.60 to $3.40 and it may simply bull flag here, but I sold mine and would use that money for another one that lines up. As expected, Clean Energy stocks are running with the Biden Election Results too.
FCEL (Clean Energy) was also mentioned as a buy down at $2.30 and ran to 3.75 yesterday. I would sell 25% and see if it keeps going or bull flags.
BLDP looks like it may be ready to go now too. It slowly started to push higher and was up 5% yesterday, but this should do as CLNE & FCEL have done-run back to former highs minimum.
PLEASE REMEBER that none of these are guaranteed to run & keep running, but the set up is there and the sector has been running hot. There are risks, so positions should be reasonable and not so heavy that a large pull back could hurt you. Position size controls risk….Please Trade responsibly 🙂
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PLM – One of our readers that goes by Ombibulous pointed out that he bought PLM as a break out, plus it was oversold. I liked this set up too. I also mentioned that it looked similar to PLG, which actually has a higher low and as I mentioned that PLG then popped too. So I agree with Ombi…I think that PLM is a buy too. Thanks Ombi!
PLG – started to pop, but stalled at the 50sma. Look at the volume. That indicates that it may be ready to break that 50sma and run higher, so if you like a Platinum Plat, this long consolidation could be a buy & hold candidate.
RIOT just doesn’t seem to be following Bitcoin the way it used to as a blockchain company, but this is a bullish set up on it’s own. I have seen both RIOT & MARA make some big moves in the past, so this was a Buy at the 50sma and I would call this break of the downtrend a buy also.
MARA really has some nice upside potential as it breaks above the 50sma and bounced off of it a few times. It also doesn’t seem to be following Bitcoin to new highs, but it is a bullish set up. Use a stop at the 50sma loosely, it did break below it slightly a couple of times and stopped me out the first time. I have since bought back in.
We are waiting for Miners to make a more decisive move higher, but the great majority remain in a choppy sideways move. Some can be bought with starter positions, so let’s just tale a quick look at a couple of ideas.
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HL & CDE both look good above the 50sma and they both made some pretty nice moves yesterday above that 50sma. Owning a start position in Miners like that may be good timing. With that however, I’d keep in mind that others like FSM, EXK, PAAS and SSRM were actually red yesterday and still under the 50sma, so we have a mixed bag.
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Ralph pointed out this nice pop in MRDDF. I like this set up too, since it shows bullish progress. It is very difficult to recommend something up 20% as a buy though, but that was a buy last week as it broke the downtrend and is a buy as it breaks the 50sma. If it dips it is a buy too, so maybe anyone that wanted to buy MRDDF & didn’t could start small and add to position along the day ( on dips or pauses on the move higher).
SILEF (Silver Elephant) – I don’t know if I have actually ever mentioned this with a chart, but I have owned this one as a buy & hold for quite a while. I like that through all of this consolidation period it has hardly pulled back in a sustained manner, but it has been very choppy. Yesterday it suddenly pushed up 8% and almost looks like it wants to break the downtrend, which is usually a buy. I will say this: When I tried to buy SILEF, volume was lighter than it is now and I had a hard time getting full position. My order sat there for hours slowly getting chipped away ( It is OTC, so market order buys aren’t allowed by most or all brokers). Buying the dips is easier so IF THIS PULLS BACK from here, I may add for the first time since buying it, simply because it has acted well.
USAU -If you see a Miner set up like this, it could be preparing to break out. If Gold & Silver slam down, this would likely do a shake out below the blue line and recover, but right now this looks like it is crawling under the 50sma and wanted to break out higher. 
The Miners are in a tough position right now. They look like a nice buying opportunity at times, but many that own them are understandably sick & tired of the Chop, Pop & Drop action. I am expecting a strong rally to unfold in the near future and when it starts it could get as exciting as the EV, Battery, Clean Energy companies are after their consolidations, but for now the choppiness makes the sector frustrating and difficult. The current Set up for Gold & Silver, as mentioned in the Weekend report, shows that we are close to that rally with cycle timing and depth, but it has become hard to read with a false break out and continued consolidation after that Pop.
Interesting Side note:
This summer I thought that TSLA was looking a little parabolic. It would need to pull back…
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TSLA dropped and started to chop sideways and relieve some of that parabolic move. When we look at NIO, it could do the same things as TSLA. Well, last night TSLA announced that they were accepted to the S&P 500 and it popped $50 higher from this consolidation after hours. The next run from a pennant may begin, similar to the run in August.
