Friday June 9th

As mentioned in yesterdays report, the Jobs Reports have been turning the markets higher each Thursday, and yesterday was no different. These CAN run a bit higher, but a dcl will be coming due soon, so using a trailing stop was recommended. I want to start with what I said in Thursdays report, since the markets dropped sharply on Wednesday.

.

On Thursday I wrote:

 The NASDAQ started to drop Wednesday after briefly making a new high, so we had a fairly strong reversal on the Nasdaq. The Nasdaq has had a nice run since day 30, and you can see how overbought it is. We should expect a pullback soon, even if the Jobs report causes a 1 day pop higher.

.

So starting with that stronger tech sector, The NASDAQ did reverse right at the 10sma and instead of a 1 day pop, this could push even higher, because there is no data released on Friday. Also, even though it’s getting late in the daily cycle, daily cycles can be anywhere around 40 days ( more or less) and as seen on the ABOVE chart, this was day 31 or 61. This is very overbought though and the VIX does look like it wants to bounce.

The SPX was not running higher like the NASDAQ or SOXX. It chopped sideways, but this is now actually a bit bullish looking, like a flag reversing higher at the 10sma, so this can run higher for a bit longer too. Lets take a step back…

The SPX: Each daily cycle has been running slightly above the prior daily cycle highs (dch) and then pulls back. This did already push higher than the Feb highs, but it is possible that it is targeting the August highs with this flag. A quick pop to those highs and then a pullback makes sense. It may not happen if we get some bad news event, but just keep that stop at the 10sma and you’ll be fine.

 

WTIC – Oil did what Oil has been doing. It sold off and then bounced back, but still closed down almost 2 %. The interesting thing is that Oil stocks dipped briefly and bounced back better than Oil did, and they remain nicely bullish.

This is NOG for example, mentioned in yesterdays report. It dipped down over 50 cents and bounced back to even. That is encouraging for now.

.

This is where a bit of a surprise crept in. I’ll go ahead and ruin the surprise though and tell you what happened. The USD dropped, Gold Popped, Silver Popped, The General Markets pushed higher…yet Miners were stagnant. Lets take a look…

.

THE USD is dropping as expected, since it is due for a drop into a dcl. It lost the 20sma too and is not oversold, so this can continue.  As mentioned above though, this USD drop was good for Gold, Silver looked GREAT, but Miners were stale.

.

You can see that GOLD & SILVER HAD QUITE A DAY – These are very nice moves with Gold up $25 and Silver up $0.82, so the Miners really should have ripped higher. They didn’t 🙁

 

GOLD -Gold was rejected at the 50sma last Friday and it is still under the 20sma. Is that why the buyers in Miners didn’t get too excited? Thursdays move was only about as big as Wednesdays move lower. I do like this MACD though, and what will Gold do if the USD keeps dropping? Could it break above that 50sma? We’ll see what happens then…

.

SILVER – I have to say that this chart really looks good to me. That was a big 3.5% surge, volume was strong, and the MACD is crossing higher. To be honest, this has the characteristics of a low ready to run higher. That said, Miners didn’t follow?

.

And this was The GDX with Gold up $25 and Silver up 3.5%?

.

 Well, we’ll just have to see how this all plays out, but for now we only have 1 day left in this week to observe things. I do think that the General Markets are coming due for a dcl dip very soon, but they can push a little higher with the current set ups. Oil stocks held up well when Oil dipped.  The USD continued to dip lower and Gold and Silver reacted as one would expect, but for some reason, the Miners were lame.

.

 Let’s see what happens to the Miners on Friday if that USD continues to dip lower and Precious Metals respond positively. I have a few stock trades or set ups listed below. I actually planned on a brief review and maybe 15-20 stock picks or trade ideas, but I had to take a little extra time to discuss that odd reaction with the Miners, so I included less trade set ups than I wanted to. Also I was going to include 2 companies that were set up bullishly, but they released earnings last night and jumped 5-10% (NAPA & DOCU), so I won’t include them yet. When the markets pull back though, we’ll be watching and waiting for a ‘buy the dip trades’, and I’ll have more in the reports then too. Enjoy your Friday trading!

.

~ALEX

.

This was ARQQ in a previous report (June 1) –

ARQQ was near $1.20- $1.25 when I first mentioned that it was pushing above the 50sma. It was a long base and moving higher into a large Gap area…

.

ARQQ June 8 – ARQQ is choppy, but it is still making progress. It has up days of 10%+, but it also can have a big down day. At this point it seems to be climbing up and along the green 8 ema line. It is about to enter the gap on the left if it keeps climbing.

.

ASST – I like this set up, it is also a long base and volume is favorable, but it is also obviously a newer company, so we don’t have a lot of research that we can do on their earnings etc, so that adds a little risk.  That said, the set up is bullish.

AMPX – I saw AMPX surge 40% higher in March and it went onto my watchlist as it ran from $4 to $10. It pulled back, lost the 50sma, and I noticed that it was back at the 50sma on Wednesday. It popped 10% yesterday as it broke through the 50sma. I think that was a buy.  It could just run higher, or it may back test, but it is a bullish set up.

.

The EV and Clean Energy sector have bullish set ups, but some are pulling back and others are holding up. We’ve discussed CLNE, OPTT, CBAT, FCEL, PLUG, and others like it as they popped from Bases. FCEL had an earnings release yesterday, and it popped up 8%, but sold off again to red.

.

PLUG paused and FCEL Popped and dropped after FCEL released earnings. So far they remain above the 50sma and are still bullish set ups.

 In a recent report I pointed out how MSFT, AMZN, NVDA, AAPL, GOOG, etc have already made it back up near their former highs, and said to keep an eye on the laggers in case they play catch up.

.

This was MSFT trending higher from that report. Notice that it isn’t just a straight line up, it can be choppy at times, but they are profitable runs. Well…

SQ was one of those laggers that I was watching and it is starting to trend higher out of its base by the looks of things.

I posted this just after the open as TGTX reversed at the 50sma . This had some STRONG up days on that first massive run ($14 to $36), so if that happens again, this has a lot of potential. Did it have a good day?…

TGTX closed up 7% and it does look good.

 

I’ve been pointing out the base for TWST, and this was my chart on  MAY 22 . The MACD was bullish and volume was perking up…

 

TWST was climbing along that 8 ema, so I posted this in the live area on June 1 midday. I lamented the light volume though. I’d love a strong surge of volume for conviction. How is it doing now?..

 

TWST June 8th- TWST is still running along up that 8ema and the volume even increased on Thursday. I know that this doesn’t look like much, but it is $12 to $18 so far.

 

TSLA  Got beaten down big time in the bear market correction. It fell from $400 to $100. It is now starting to recover nicely.

 I actually tried to buy TSLA at the 50sma for a trade, but it was only going up 1% per day and occasionally 3% a day, so I figured I’d just grab the next dip.  It has just continued to run up 1-3% day after day after day. It has been up a little bit for 10 days straight. I want to buy this dip and will put it in the reports when it pulls back. I watch it daily.