Tuesday December 22nd – Just A Little Choppiness
QQQ – Midday I pointed out that the Market dip was being bought (Again) at support. The markets have been resilient and stops have not been hit.
.
SPX – So the day ended with a reversal candle. Now we’ll see if the rest of this shortened week gives us the so called ‘Santa Rally’ or not. We have 2 &1/2 days of trading left, and often people start to leave for vacation and the sellers aren’t selling.
,
WTIC – Oil had an odd candle too, and this time it may be that Oil is forming a short term topping area. Why? At day 35 OIL might be ready to start dipping down into a dcl. That doesn’t mean that Oil just drops everyday, but it can start to stagger down into the next low or become choppy here. The Oil daily cycles can be 50+days, so a gradual dip to the 50sma is not out of the question.
.
THE XOP seems to be leading the way in a similar way that Miners often lead the metals. This will become a buying opportunity when it bottoms out and we have a reversal or dcl. We have seen BIG gains in this sector with many oil stocks moving over 100% already in the first daily cycle.
I’d like to see the Miners do that too 🙂
.
SILVER & GOLD – If you saw Gold & Silver Sunday night, then you saw a strong rally followed by a crash, and then a slight recovery. It looked like stop run on futures overnight. Hopefully this settles down and gives us some more of that upward climb that we see on the left side of this chart.
.
GOLD – with that rally & drop overnight it seems like Gold back tested the recent break out. That is not a bad thing, however…
.
Keep in mind that the last break out with Gold was a FALSE BREAK OUT, so this move may have been designed to make it look similar to that last false break out. It may be designed to shake people out and cause this to look like Gold is going to fail again. So far this is fine and I have drawn in a blue trend line that could be a place to watch for gold to tag next. I do NOT expect a drop near $1800 or anything like that at this point, but even that doesn’t break the ICL set up.
.
So far GOLD landed on the 34 sma and bounced on day 15. There is still plenty of time to move higher and that is what I expect going forward. I have drawn a drop to that Blue Trend Line as a possibility and that would still be normal price action.
.
SILVER is a valid break out and Sundays price action at this point is just one of those anomalies that come about from time to time. Even a drop to back test the break out does not hurt the chart. That being said…
.
When I use stockcharts for Silver, they give me a different trendline. This is still fine too, there should be enough support below to hold price up if this drops further. Note: IT IS GOOD TO NOTE THAT MANY SILVER STOCKS were still green on Monday and…
.
In fact, EXK was up at the 2020 highs with Silvers weird price action, S0 I am not concerned with the choppy price action that we saw on Sunday night.
.
GDX DAY 18: GDX is still trying to break out, but hit resistance and now may try to fill that gap. It is good to note that while this is happening with GDX, many individual Miners have already made a break out and look quite Bullish.
..
So with GDX on day 18 and knowing that a daily cycle can be 30+ days long, we are roughly 1/2 way though the first daily cycle. This can still break out & go higher into the 20+ day range and eventually dip down into a dcl later.
.
Not a lot has changed since the weekend report. We still have many bullishly set up trades in various sectors and a shortened holiday trading week. Usually volume lightens up as this week goes on (often traders start to pack it up early and take time off for the holiday week) and the bias can be to the upside as sellers are away. We’ll see if 2020 plays out any differently, since many are not traveling for the holidays this year.
.
I’ll have a few stock set ups below, enjoy your Tuesday trading!
.
~ALEX
.
EXK – As mentioned some of the Silver stocks are still acting bullishly, even with the choppy Silver price action.
.
GPL – So I mentioned early in the day that I added to GPL & AXU , positions that I started as somewhat lagging my CDE & EXK positions. These are bullishly set up and low risk entries since I can just use a stop under mid-December lows or even the 34 & 50sma.
.
AXU – So at this point I listed some Miners to buy and they popped higher out of their consolidations. Now they are pulling back a little and this can offer another entry to those that didn’t buy, or a place to add to current positions. Look at CDE & EXK (near or above the highs as leaders) and you can see that these may play catch up, so we want to own them on dips and we wont have to chase them later.
.
I will have more Miners in Future reports as they continue to set up Bullishly.
.
MGI was recommended as it reversed on support and it reversed again Monday on the 10sma (a good place to add) . This ran from $2 to $9 and is related to block chain trades. If you add on this dip, you can use a stop ON THAT NEW POSRTION at the 10sma, and the other stop is under your original entry or raise stops to lock in gains if it drops. I think this vcan just run higher from here.
NETE was also reversing at the 20 sma and can be linked to the EV Sector. I did add to my NETE position and can use a higher stop for that added portion.
.
PLM – Is something wrong with PLM (recommended between $3.25 & $3.50 here)? I said that this could do what PLG did, since the base seemed similar and I took a position.
,
PLM – I added under $3.50 again as it sent sideways and now had a heavy position hoping that it would just take off out of this base, again, the way PLG did for us. We made Great Gains on PLG…
PLM – I got 2 complaints about PLM. “You said it was a strong buy, what’s wrong with it?” Well, Nothing. PLM is above support but it just meanders sideways. It was actually above $4.20 and has pulled back a bit, but I still have gains. This is obviously not the exceptional run that I hoped for (yet),but it is profitable. Like I said, I was pretty heavy so I cut some of my position last week and mentioned that in the live area for those trading midday. If you are bored with it, sell it, but it still may run. For now it is healthy and in a base with a series of higher lows.
.
PEIX – You MUST look at the other clean energy stocks listed and then you’ll see why this may be ready to catch up. Most are near the highs and PEIX could be ready to play catch up. It already had a VERY STRONG RUN July to Oct, but it has consolidated lately. PEIX eventually may form a cup & continue onward as drawn here. (Stop under recent lows)
.
FCEL – FCEL has broken out from its consolidation. For traders that know how to scalp trades or want to swing trade this, it has broken out. If a burst of volume comes in it can just keep running. If volume stays in this area, it may just double top, but this is a bullish break out. LOOK AT THE CHART OF CLNE BELOW , FCEL MAY DO SOMETHING SIMILAR.
.
Similar to FCEL, notice how the volume was light and suddenly burst in? FCEL could do that too.
