Tuesday January 5th – Off And Running Again!
SPX MIDDAY – I posted this chart midday in our live trading area under the report. The General Markets started off Green but dropped quickly as the day went on. I was pointing out that many of the past Flash drops bounced at the 34 sma, so I would be looking for that as price sat right on that 34 sma…
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THE SPX did bounce at the 34 sma. None of the stocks that I was invested in were affected, and that included Miners, Biotech, and even EV / Clean Energy stocks, so it is possible that this is just a small blip along the way. The ones that did sell off were many Tech and Semiconductor stocks.
If we open up down Tuesday, I would keep an eye on the 34 sma again. A parabolic blow off top may just have short quick drops on the way higher, but note that the MACD does show weakness, so it is also possible that we could chop sideways for a bit too or even dip into a dcl over time (Daily Cycle Low). Most of these lately have 1 or 2 day drops and that is it.
IWM – The Russell 2000 looks weaker when you examine this small drop with the RSI & MACD. The Volume is also showing signs of increased selling or distribution, so lets stay alert to the idea that the General Markets could get choppy and they could even still pull back further. Again, some sectors were not affected, and with that thought…
THE MJ SECTOR IS BULLISH: Yesterday in that trading area under the report I called out that ACB & TLRY and a few other Medical Marijuana stocks were an immediate Buy. They were up 2%, but the set up was bullish. They closed up 14% . Here with the ETF you can see that the Market Sell Off did NOT affect MJ STOCKS.
1. You can buy this with a tight stop or
2. Buy the break out of this wedge consolidation, but the smaller stocks already started breaking out. I’ll discuss that at the end of the report.
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WTIC is on day 41 and within the ‘timing’ to start looking for a dcl. It may just chop sideways since it has been strong, but at this point short term weakness should become evident. A DCL will be a buy in this sector, since this was just the first daily cycle out of the deeper ICL, so I’ll look for that as time moves forward.
THE XOP can act like the ‘Miners’ at times, bottoming a little before Oil does. This may be bottoming here, so a Daily Cycle Low is also due with Oil Stocks and many may bottom early. Most of our Oil Stocks moved up 100% from their buy point, so this will be a BUY too. Some may simply be holding their Oil stocks through this dip too, since it should resolve with another upside run. I will discuss that break away gap later 🙂
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APA – I see some of the OIL stocks that look like a buy set up at support. I wondered if we would get an A-B-C type of drop to support, but this may be all we get. APA is oversold, broke back above the 10sma and looks like a buy with a stop. Others look like this also. They could be bought with a stop.
GOLD #1 finally gave us the break out that could signal as a buy for the rest of the trading world. This is Bullish and now Gold Miners may try to play catch up with the great run that our Silver stocks have been putting in. Volume increased as buyers went long and shorts likely had to cover. So…
GOLD #2 close up – Gold is only on day 23, and since it can have 33+ days until a DCL, we could go higher 2 (?) or 4(?) or even 7 (?) ore days until we dip, right? A peak on day 30 is possible and then drop down for a few days to a daily cycle low. We just don’t know EXACTLY how it will play out, so there is no need to guess. This is simply the Bullish break out that I have been saying to look for, and should ensure that this is a right translated daily cycle (Bullish). The sector has an ICL from November and this is a bullish sector.
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SILVER continued higher too.
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NOW LOOK AT THIS BREAK AWAY GAP IN OIL STOCKS. NOTICE PLEASE THAT IT DID NOT FILL. IN FACT, ANOTHER GAP FORMED 6 DAYS LATER TOO, AND THAT ALSO DIDN’T FILL.
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GDX : So I wanted to say that we could back test that trend line & fill that gap at the next DCL, but if that is a Break Away Gap? A BREAK AWAY GAP DOES NOT HAVE TO FILL, AND…
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LOOK ALSO AT JUNES BREAK OUT & BREAK AWAY GAP. I SAID THE SAME THING AT THAT TIME, and the rally took off and never looked back. THIS IS WHY we were buying Miners over the past several weeks. Break away gaps often leave people behind as they wait for the gap fill. Notice yesterdays volume.
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GOLDS BIG PICTURE DAILY CHART:
Well, we have been invested for over a Month in Miners, and this is what we’ve been watching for. We have a clear Break Out above the trend line in Gold which should help to draw in more Buyers and cause shorts to cover. This would push this sector higher and we should have plenty of upside left in this move over the next several weeks. Gold Miners may now play catch up to the Silver Miners.
Take a look at past trend line break outs and notice how Gold ran higher from there.
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Ride those Miners! 🙂 Enjoy your Tuesday trading and I will discuss a few additional things below.
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~ALEX
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I want to go back and point out how we bought some of our Silver Miners in late November and early December, because Gold Miners are set up in a similar manner at this point, so lets go to EXK.
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EXK – This was December 1 and I had already entered EXK but this was a great place to add or start a position too. What I was pointing out was that price got above the 50sma after a long consolidation and even a higher low. Many Gold stocks are set up similar to this, so what does this look like 1 month later?…
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Notice that EXK has had a strong rally and it even has a break away gap that formed the day after that BUY. That gap never filled, so with Gold stocks we could see something similar. Miners like BTG, IAG, AUY, etc can do the same.
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As a side note: I also showed the WEEKLY EXK CHART to build confidence that we had Bullish set ups in the Big Picture too. Our Gold stocks also have weekly bullish stocks. Now lets look at BTG…
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BTG – You can see that BTG right now is very similar to what EXK looked like when we bought it breaking above the 50sma. So while some of our Silver miners are now extending and may be a bit too extended to enter comfortably, this is a Low risk/ High reward entry point for Gold stocks. A stop would be placed below the apex or recent lows.
EXK – As a visual, again take a look at EXK at the buy point. It was a series of higher lows forming an apex of a triangle. That was similar to BTG seen above and IAG seen below…
IAG looks exactly like EXK at its buy point, so IAG is a low risk buy too. Downside risk using a stop is minimal and upside rally targets offer great percentage gains over the coming weeks. Check out that volume!
GORO offers a different set up. It remains ‘at or close to the lows’, but it is showing bullish potential. That was a strong reversal with strong volume and from here the upside is great, let me show you…
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GORO is actually back near the lows, so it has had its struggles, but being at the lows means that it has the potential to run back to the 2020 highs at $6. GORO was $3 yesterday, so that is a 100% gain and honestly it does look like it can get there with this new high volume pop. It is oversold.
I think that SAND is a really nice set up. In March 2020 it ran from roughly $3.50 to $10.50. How does THAT sound? Here it has pulled back to the $7 area and broke a downtrend & the 50sma yesterday. I think that this is a very nice set up and the fundamentals are great too ( See their website at sandstormgold.com) . I LOVE THIS CHART.
I have owned SILEF for a long time and it has done very well in 2020 ( up 500% by August actually) . I pointed out that it broke out recently, but yesterday it popped higher and reversed lower. I don’t think this indicates weakness and I think that it is an opportunity to add or buy before it continues higher. We COULD see a back test here and then a reversal higher as a buy..
I can’t really call SLVRF a lagger, because it ran from $0.40 to $0.65 in October! It has however stalled to consolidate and can be considered a buy in this APEX. In Canada the ticker is SVE and I think that it has good upside potential too.
I need to cover a few other areas, so I am hoping that this gives you an idea of what to look for with Miners. Maybe you can take that little lesson with EXK and apply it to BTG, IAG, and even a few other Miners that are on your watch list to see that they may be “Buy” Opportunities. I will also definitely cover more ‘Buy set ups’ in this sector as time goes on with slight pull backs that can be expected along the way.
Biotech Rockets: The rockets continued to blast off
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AS A REMINDER: NOVN was pointed out as a buy recently and I had been mentioning various other Biotech stocks that we traded earlier in 2020 like DVAX, INO, IBIO, TRXC, CHEK, etc (and made huge 100% plus gains on) were setting up bullishly again. By now many of you probably have the same watch list as me, with literally over 100 of these, but some look better than others…
NOVN popped last week and we got what I affectionately labeled as a Giraffe neck last spring. I often sell a partial on my positions when they pop this much to lock in gains. Well…
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TRXC has been in the reports recently as bullishly climbing the 20sma. This was a buy and I said that I did buy it.
TRXC– still rising along that 20sma, I showed that it should Pop and run to 2020 highs…
TRXC started to pop yesterday and I added when I saw that volume was increasing. To me, volume flooding in is the same thing as when you add gasoline to the fire. It gets explosive and this was TRXC by 1:44 p.m., now up 63%. I usually sell 25 – 33% when they get this extended, but I may decide to keep some, especially if it closes near the highs, because it can continue.
CHEK– Ingestible imaging capsules – We traded this in July as one of those bases too, with high volume POPS in the base…
CHEK– popped and dropped, and this is why I often sell ‘some’ on the Pop. It continued to base and last week I said in the live area that it caught my eye…
CHEK– I mentioned that CHEK was a buy last week in that live trading area when it popped and landed on the 10, 20, & 50sma. Last week it started to POP again with big volume and yesterday it took off fast. I used intraday charts to ride it until it broke support but it never did. I sold this up 200% at the end of the day, and it was up 300% in after hrs! I should have sold it in after hrs 🙂
So lets look at a couple of interesting set ups in this area.
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DVAC is interesting and bullish, but that doesn’t mean that it will be up 60% today. It reversed above the 50sma yesterday and it is oversold, so I think that it has the potential to run higher form here. See the chart
SXTC, INO, GHSI and IBIO are a few that actually look like they may POP & RUN for ‘Scalp traders’. For me it is hard to ‘recommend’ a stock up 19% like SXTC to regular traders, because it can now drop 10% also, but this is a good set up for those ones that can pop & run. I would put these on a watch list and possibly buy a reversal on support if they drop again. I will put them in future reports if they set up a bit more low risk.
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IBIO ( INO is similar)- This is another one that I am keeping an eye on. We traded this with HUGE %_Gains in early 2020, and now it has come back to earth and has been building a base. If it gains sympathy with the biotech sectors bullishness ( or releases good news) it could make some great trade scalps for the day traders here or the scalpers. As a day trader, you could Keep it on your watch list & check it through the day. It also COULD be bought buy & Hold, but some of these just chop sideways for another month and become ‘dead money’. That is not very fun wen that money could be in a MINER running higher.
I wanted to point this out too:
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DEC 29 – NIO was a perfect buy entry here as it reversed on the 50sma, so I posted it and said that I took a position.
NIO has follow through and I expected that to continue so I posted this as a place to ‘add’ to get to full position if you weren’t already full position. Well…
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NIO continued higher by 10% yesterday, AND THIS WAS AS THE GENERAL MARKETS SOLD OFF. I wanted to point that out because it is possible that this sector of EV (Elec Vehicles) can ignore the selling too. That said…
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Both SOLO & WKHS held up yesterday too, and may be or become a buy. I would say that SOLO is a buy here at support, but since it is chopping sideways for the past month some may want to wait and see if it gets an upside burst first? To prove that it is ready to go. I like the set up and the gains for us on SOLO were big too. Look at the potential in this sector.
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AS MENTIONED, THE MJ SECTOR RESISTED SELLING TOO. THE ETF CLOSED UP NEAR THE DAYS HIGHS.
ACB – I called out ACB & TLRY as an Immediate BUY in that live trading area and posted this chart of a reversal at the 50sma with good volume. I mentioned it when they were up 2%, but suddenly they were quickly up 5%, then 8%, and …
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ACB closed up over 14%. These move very fast, so they may not be for all traders ( they drop as fast as hey run), but this can run very quickly as seen on this chart. I wrote in my November & December reports that I thought this sector may be bottoming with the Biden Election Win in the US. They immediately Popped and have now consolidated. The sector looks bullish again, read the chart.
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So this is TLRY and it ‘only’ popped 8% and is a buy too. This looks easy to hold, but these are swings from $10 to $8 to $10. It can be tough to hold them, but I do think that a stock like TLRY could be $12, then $15, etc over time if the sector remains bullish.
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OGI has been trapped here above the 50 & under the 200sma for a while, but once this breaks out it can run swiftly too. OGI looks ready to go now, at the Apex of this squeeze. It is a low risk buy.
