December 8th – Break Outs
We are due for a pull back in the General Markets.
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SPX -This chart still really looks good, but I am just going to repeat that I do see several bearish signs along with it. The ‘Put Call Ratio’ calls for a high and Sentiment is extreme too. The VIX and a few other things that I look at are calling for a dip. Maybe its just a quick dip into a dcl, but it also could drop this as a back test to the 34 sma area, so use stops if you are away from the computer. Even if they have to be loose stops at the 34 sma (blue line), it will help if you are away and we suddenly got flash down day.
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I see No change with OIL & OIL Stocks. They are bullish and buy the dips is working there.
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GOLD -When I saw Gold at 6 am on Monday, it was down. Suddenly it surged higher and we got a nice reversal off of the 10sma area. This continues to show us Bullish action out of the DCL/ICL. Next, let’s IGNORE THAT FALSE BREAK OUT…
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I want to IGNORE THAT FALSE BREAK OUT, so I erased it 🙂 I did that so we can focus on the idea that if that never happened, we would now be at the point of a Bullish Break out. We see Gold pushing on the 34 sma & downtrend line with Mondays push higher. This is a Bullish set up.
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SILVER looks ready to break out too. Silver stocks have been acting bullishly.
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Last Thursday I used this chart so that you would know that a pull back to the 10sma is normal.
WE GOT THAT PULL BACK TO THE 10 SMA. THIS WAS IN THE WEEKEND REPORT & I WROTE: AT THIS POINT Buying Miners with a stop is a low risk entry and that dip Thursday and Friday should have been helpful if you were not invested as much as you want to be at these lows.
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With that lower trend line, GDX can be viewed as a shake out and recovery too. A long consolidation like this can lead to a long run higher from here.
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Now everyone can join in the fun! 🙂 We have had bullish set ups and runs in Tech Stocks, EV, Clean Energy, SPAQ, BIOTECH like MRNA, BNTX, NVAX, etc. Commodities (Steel, Copper, Aluminum, etc) have also been running higher. Then Oil & Oil Stocks and medical MJ Stocks bottomed and joined in with good %-Gains too. Now we see the Miners ending their consolidation and an ICL should be in place. Buying & Holding Miners last week started to add to gains and going forward we could see some of these stocks double & triple too.
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I will have a few trade ideas below, enjoy your Tuesday trading!
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~ALEX
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Before the POP on Monday we saw Miners pulling back to the 10sma. I said that that was a buying opportunity, but there were complaints last week saying that this looks like weakness and miners seem to also be acting too weak for an ICL. I want to point out to you that a nice slow steady climb is just as good as a rocket ship higher.
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AEM paused Wed, Thurs, and Friday and then Popped Monday. This is only a 4% pop, but I’ll show you why this is still good progress…
Look at the climb that AEM made earlier in 2020. It was very slow and steady too, but it climbed from $30 to $88 over time. in fact, at the ICL it just chopped around for the entire first month from March to April, so we are already off to a better start.
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KGC chopped sideways at the lows for the past 2 weeks. It gained the 200sma and then dropped for the past 3 days sliding down that 200sma. Was it Weakness? Well it suddenly Popped 8% today and I captured this chart midday. 
KGC went on to close with over 17 million in volume. The RSI broke a downtrend, the MACD crossed and the Histogram went green. This is set up bullishly.
AUY is breaking out from a rather tight consolidation and the RSI went above 50%. It bull flagged under the 34 sma & broke out today. This was a buy last week and AUY can also be bought as a bullish set up too. Use a stop.
FGOVF – I have discussed this many times as the miner that will triple if it just gets back to former highs. I mentioned that I bought it at the Oct lows since that was at the 200sma, and it is a buy right here too. It has made higher lows during the recent sell off. This was DOWN Monday.
NGD was pointed out on Nov 30 in the $1.80’s as Bullish since it held up so well. This was a buy here or when it breaks the 50sma. NGD had a STRONG run in 2020 already.
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NGD has broken out as expected and is not too far off of the 2020 highs closing at $2.13 Monday. Do you own it?
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I posted this in the Live area Monday Morning about EXK as a place to add or buy at the 50sma. It was up 2%…
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EXK ran up over 8% and then Closed up 7%. This was a buy last week as it crossed the 50 sma and I mentioned that I bought it. The 5 year weekly chart shows that this has great upside potential too. Ignore that 200sma marker.
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When I posted how Bullish this base for PLG was, I was hoping that it would just explode higher for us…
And PLG has exploded Friday and Monday. In fact, it was up 50% in after hrs Monday too. Based on my past discussions, You’ll have to decide whether to sell some or all, or just ride it out for long term. I sold a portion on this pop.
When I posted PLG as a Buy I also posted PLM as a buy…
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PLM was popping from a downtrend on Nov 16 as a buy. Later…
Later on Nov 23 I posted this again as it now Popped above both the 200 & 50sma and was making progress breaking another downtrend line.
When I saw PLG Pop on Monday, I immediately posted in the live area about PLM as one that may follow PLG.
PLM only closed up 3%+, but at the end of the day in after hrs it was up 14% at $4.10, putting it above this red line. I don’t know if it will sell back down in pre-market or continue higher, but I’m thinking that this may be the next one to go. If you already own it, ride it. If it opens inside of this triangle it can be a buy with the 34 sma & lower triangle line as a stop.
CHFS – On Dec 2 I pointed out that some of the former bullish Covid plays like NOVN & CHFS were set up bullishly again. Using this chart and the 34 sma I pointed out that price was breaking higher.
CHFS – Switching to the 50sma I saw price pinch between the 8 ema and the 50sma & price Popped. I posted this in the live area as a Bullish pinch that may continue to pop. A break out is a buy or add ahead of time.
CHFS – later in the day I posted this as CHFS was able to break out from that pinched area. We may see nice follow through this week or it may chop sideways for a bit like NOVN is, but so far this is making progress too.
OGI was also pushing against the overhead resistance of the 200sma. A break out from here could be quite Bullish and it closed right at it with 13 million in volume.
GTE DAILY – You may recall that I was buying this break of GTE back in November. That is a nice long tight base and price can move swiftly out of them
GTE WEEKLY – This is the kind of base that I look for so it does have the set up. Well…
GTE DAILY – Price Popped and I sold mine at the end of November and kept it on a watch list. It then dropped to the 10sma and reversed. Yesterday it closed slightly down & then I saw it rally up 80% in after hrs! I sold mine but I’m hoping that someone else decided to hold on a little longer than I did 🙂 This traded over 50 cents Monday night.
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SOLO could be ready to run again, since it is oversold and started breaking above the 8 ema. It could be bought with a tight stop…
We rode this last rally in BLNK and it ran from $9 to $35. After a consolidation it looks to be breaking out a bit more clearly and could also run back to the highs.
SUNW has a similar set up too. These all rallied in November, dropped back down & reversed. They usually eventually get back to the highs and even break the highs and rally, but they also may chop around a bit further. A break above the 10sma is bullish…
PPSI rallied and dropped and then got back to those highs. This is an example of how these se ups may be choppy and tough to ride, but can work their way higher…
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And HCAC rallied, dropped, reversed and then Popped 35% yesterday, so this sector of SPAQ and EV does have a tendency to move in big ways. 
XPEV, PIC and IPOB were also recommended by me, but I didn’t stay with them as long as I could have. They move too quickly and I sold my IPOB on the last pop due to the gap. It is now breaking toward former highs and can break out and run.
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TGB was mentioned as a good set up in Copper at the end of November. FCX and HBM were pointed out as good examples. Well…
TGB is still a good buy set up right here on top of the downtrend line.
WRN has the potential to run away too. This looks like a large cup & handle type of consolidation, though it isnt a textbook C&H. Buy a pull back or buy a break out.
