Tuesday November 24th- Fun With Rockets
As a reminder: The Markets in the US are closed Thursday and will only be open for the first 1/2 of Friday. Often times we see a melt up in the General Markets on a holiday week like this one and on Monday they started off green, so we’ll take a look at the charts and at the end of the report I will discuss the fun and dangers of playing with Rockets. 🙂
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THE SPX may be forming a bullish pennant here with Mondays reversal. We could see more upside this week.
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6 a.m. Tuesday Morning : BITCOIN is just about at all time highs, and the Crypto world and blockchain stocks have been running too.
WTIC – Oil broke out further as expected. It is only day 15 of possible 50 in a daily cycle. Oil stocks have also been an excellent trade to avoid the drop in Miners.
XOP was up 9% and that’s a lot for this ETF. It is climbing up along the 8 ema in the same manner that I pointed out individual Oil Stocks were.
I have been discussing the Buy Set Up off of the 8ema in Oil Stocks like MRO, VLO, APA, ERF, CVI, AROC, CPE, etc. Let’s take a look at a few again.
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CPE climbed 8% Thursday, tagged the 8ema Friday as the buy and added 24% Monday. These are acting quite Bullishly. CPE is now up 100% Off of the lows.
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MRO has been pointed out as a buy at the 8ema and here it popped another 10% Monday alone. This is almost up 100% in a month now too.
CVI – Is this a lagger? Its ‘only’ up 50% and was at the 8ema Friday. It popped 10% but a dip could be bought.
LPI is the lagger, but it looks to be a Bull Pennant. It is ‘Only’ up 35% from the lows and as mentioned it looks to be forming a bullish pennant. So the idea is to run through your list and look for some that are lagging a bit. If you find any forming bull flags or pennants, they could offer a low risk entry.
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GOLD dropped about $40 on Monday and I had discussed that the Drop to new lows Friday with the Miners could be a warning, since Miners often lead the metals. So Gold is on day 39 and that makes it due or even late for an ICL, but I expect it to drop further. See the chart…$1800-ish or lower.
SILVER dropped 3% and should now break that lower trend line. Will my $20 Silver be reached? We’ll see but Silver also drops very sharply at times, so it is possible.
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GDX broke that 200sma on Monday. If we are expecting a low soon, then we would expect that this could turn into a shake out, but when? Keep in mind that Miners often get FLUSHED OUT, or sell off quickly into an ICL. I will show you an example shortly. I will personally be watching to see if & when Miners start to hold up first (or sell off less) as Gold continues dropping down lower. I would like to see GDX bottom first and then reverse while GOLD & SILVER are down.
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The FLUSH DOWN that often happens into an ICL: We had a strong break out on Fed Thursday & Friday, however that Monday saw the price drop back down. On Tuesday evening after the Fed Pop ( 2 weeks ago), I wrote a special report on Gold. I said that it was time to treat this sector the same as we were before the Fed Mtg. It was a sloppy choppy mess that was probably still seeking out a larger drop into the ICL. Position accordingly. I mentioned that I cut leverage, I cut some Miners out and I even cut other Miners positions in 1/2, just in case the ICL was still ahead. I started trading other areas again ( EV, SOLAR, CLEAN ENERY, OIL STOCKS). Now we see some Miners in the Flush down phase.
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AEM – Some of these stocks that may have even looked like they were going to resist the selling have had a sudden sharp sell off. This is the kind of action that we see as we seek out an ICL with a ‘day after day after day’ kind of a flush down. Even Bulls bail out at ICL lows.
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BARRICK: This does look like the kind of action with Miners that we see as they drop down into an ICL. I call it a flush down. It is that ‘day after day’ kind of sell off with only tiny bounces or no bounce in between and this helps Sentiment to finally turn bearish for everyone in this sector. Even the Bulls start to hate miners at this point.
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So we have a holiday shortened week in the US with the Markets closed on Thursday and a half day of trading on Friday. It looks like the set up should play out bullishly for the General Markets and Oil while the Precious Metals market appears to finally be seeking out that ICL. Enjoy your Tuesday trading!
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~ALEX
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LTBR was pointed out with this chart last week as a buy here under the 50sma or when it breaks above the 50sma & down trend line.
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LTBR – It was a buy Monday and I bought it.
Recently I have been pointing out PLG & PLM. This was my Nov 20 chart of PLM . Buy here and add above the 50sma? Or buy as it breaks the 50sma.
On Monday PLM became a buy again too. It can still be bought.
I just want to point out this ridiculous move in BLNK. We have seen this kind of extension in many stocks like SOLO, XPEV, and several others, and the sector just continues to explode higher. So…
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I have been pointing out laggers that have bullish patterns, buying & riding them up, selling extended ones and re-entering ones lagging at or near bases or support. With this I just want to say to please understand that ” THIS PARTY WILL NOT LAST FOREVER”. These kind of moves just are not sustainable indefinitely, but it definitely has been very rewarding. So ride them while you can, I’m still buying laggers and riding rocket ships, but be ready to end the dance when the music ends. Do not chase extended stocks, they can drop Fast.
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OEG is an example of another ‘lagger’ that I mentioned last week as it broke a pattern and Monday alone it was up 70%. So lets go back to see if there are laggers with bullish set ups.
LIACF is a Lithium Company and I bought it as it squeezed above this 50sma & downtrend. Lithium batteries make this one a hot stock candidate, so I think that it can run once it gets going.
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OPTT – Last week I called out OPTT as a potential runner in the Energy Sector. I bought it above the 50sma & it popped & dropped…
OPTT – I then captured this chart before the market closed Monday for this report. It was lagging. I was going to say that it is still a buy as it reversed at the 10sma & did a Gap Fill. I owned it last week and added. Well unfortunately they released Bullish news after hours and…
OPTT WEEKLY – It shot up 42% in after hrs from that $2.17 close to $3.10. If you own it from last week, this is the weekly chart so it may be worth selling a little but staying on for the ride ( maybe sell some on the push higher). This looks similar to BLNK WEEKLY.
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I also have been discussing IPWR, it was in the weekend report as a buy. It was red for the morning, but flipped green so I started to post about it in the live area as a buy. This was lagging and I mentioned that it should be bought. It then suddenly shot up 23% and closed above $9.50. It continued higher in afterhrs.
IPWR is the one in the weekend report that I said was possibly exceptional, because it looked like BLNK on a weekly chart. I hope you bought in while it was Red Monday morning. This is IPWR WEEKLY, and this…
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FROM THE WEEKEND REPORT I WROTE: BLNK WEEKLY – Look carefully at the weekly chart. We saw an ENOURMOUS move in SOLO, PPSI, BLNK, etc., but look at the weekly triangle that formed on BLNK before this rocketed 133% last week alone. It is similar to what we see in IPWR WKLY NOW.
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I really want everyone to be aware of the fact that this price action in the EV, Energy sector is abnormally bullish. Gains of 20% followed by 35% followed by 70% are NOT normal and I do think that eventually the raging heat of this sector is going to cool down rather quickly. We saw similar price action months ago in the Biotech / Covid Vaccine or Testing sector and those came back to the Earth too. I do NOT ride them back down, but some have neglected to sell when the party ends. When you look at HTBX, CHFS, NOVN, etc now, you get an idea of how this could all end. It sells down & turns into deep consolidation.
Even GOLD, SILVER and BITCOINS rocket ride dropped back down and formed round bases, so lets keep that in mind and Stay Frosty if you are trading these.
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Finally NKLA – This is not overextended, but it has moved higher off of the lows. You could keep it on a watch list and Buya dip if you see one.
