Friday February 14th – Good Picks!
This report is going to be filled with some Good Stock Picks, but so many sectors are set up bullishly, that I won’t be able to cover all of the ones in my watch lists. I want to post a decent variety though, now that the General Markets chop may be ending, and I can always post more next week.
.
From yesterdays report:
I have been saying that we should not end this cycle with a day 8 peak out of an ICL. The first daily cycle out of an ICL should have the strength to overcome bad news, and that is what we saw again, as the day went on. Another drop and recovery off of the 50sma.
.
SPX that day 8 high was L.T., so I have been expecting the chop to eventually stop, and we’d break higher. We had a nice solid burst higher on day 21 and I feel that the rally that originally started out of the ICL can continue.
.
YESTERDAY:
THE NASDAQ lost the 50sma and was able to regain it by the close (barely). I see a triangle formation here and I would have to expect a breakout higher, since we are coming out of an ICL.
.
THE NASDAQ pushed higher after the PPI Numbers and The Jobless Claims Report. Moving up and out of an ICL is what we expect, despite the recent choppiness, and it can last for weeks. Hopefully this consolidation gives the markets the pent-up energy to just continue to run higher. So…
.
Hopefully this consolidation gives the markets the pent-up energy to just continue to run higher. So you can still add to your QQQ, SPY, SOXX ( TQQQ, SOXL, SPXL) or you can buy or add to your ICL buys, like AMZN, SOFI,RDW, or other stocks that I have mentioned. Some look good, others may not yet, so I would choose wisely. I also mentioned AAOI, GOOG, etc, but they have lagged. I want to review these set ups later in this report.
.
AMZN FOR EXAMPLE – Even with all of the recent choppiness, you can see that AMZN, WMT, META, and others have been able to act bullishly. We buy the dips, right? AMZN was a buy at the 50sma at the ICL in January, and it is a buy again at the 50sma now. (HAVE YA SEEN META??) I will discuss more of these set up later in the report.
I will discuss more of these set up later in the report.
.
WTIC – Oil dropped again, back-tested the triangular trend line break, and reversed higher. Oil is quite choppy.
.
GOLD is at the all-time highs as I finish up this report this morning. It may tag that round $3000 number before pulling back.
.
SILVER broke the downtrend line and that often leads to a move back to the highs. I’m trying not to sell my Silver stocks during the chop, because I can see what Gold stocks did with Golds run higher. It would just be too difficult to get back in unless we really sell off lower. If we sell off Deeply, I’ll just add at a dcl reversal.
.
GDX – Speaking of not selling because it would be too hard to get back in, The GDX is a good example of that. Yes, it has down days and was choppy at times, but this rally did not lose the 10sma yet and even accelerated over time…
.
If you bought GDX near January 2,3, or 4th at the deep sell off low (ICL), and sold at the end of January with that chop, where could you have bought back in lower? It was impossible. So I have to wonder if Silver stocks could start to accelerate and leave people behind that way? I do think that they could, so I want to be holding some Silver stocks.
.
EXK is a real lagger compared to others. You may recall that it dropped on Jan 8th when they announced a delay in The Terronera project, but it was still doing well in other areas and recent updates have been positive. I like this set up and can use a stop at the 50sma. It was a buy at $3.50, so it has slow gains so far, but it really should make a run to former highs and then maybe more.
.
HL has been slow and steady over the past 3-4 weeks out of the lows. Recent volume has been bullish.
NOTE: HL released earnings Thursday night, dropped 25 cents and then bounced back to only down 3 cents in after hrs. In Pre-Market it is now up 3%!
..
This chart of AEM is actually from Wednesday. I just wanted to use it to show that when price got back up to the former highs (the supply line) at just under $90, it churned sideways for a week and then was able to breakout. This often happens at the resistance line or supply line.
.
FSM shot up out of the lows but could still be considered to be inside of a large base. It is churning sideways at the resistance line or the supply line. This is what I was pointing out on AEM above. A small churning sideways. A break from here could quickly add $1. A drop to support would be a good place to add.
.
SAND was pointed out by me as a lagger in January that could play catch up. It has, so I feel that some other laggers do have hope.
.
SA was the lagger that I also pointed out. It was at $12 and then it moved to $13. Today, SA is still chopping sideways at $13.33, so it still is worth watching.
.
The Precious Metals Sector is very bullish, and the General Markets has been choppy, but it may finally be ready to run higher and start to trend higher out of this ICL. Time will tell, but at this time I wanted to go over some stock set ups below after discussing Bitcoin, so don’t skip it if you are interested in stock picks. Enjoy your Friday trading and enjoy your weekend!
.
~ALEX
.
YESTERDAY:
BITCOIN could be triangular and day 30 was yesterday. This sideways chop is just brutal when you are waiting for some upside price action.
As of yesterday, I did start to see some upward movement in Crypto stocks as Bitcoin started to move higher. Again, they may be following the General Markets, which gapped down and ran higher too. The Crypto stocks did sell off a bit into the close, so they still bear watching. The ETFs are another option if Bitcoin stops chopping sideways and starts to run higher.
.
BITCOIN continues to chop sideways.
,
As mentioned above, AMZN is climbing the 50sma and that is a low-risk entry (with a stop).
.
DURING THE CORRECTION I WAS MENTIONING PLTR AND AFRM AND A FEW OTHERS AS STRONG RALLIES THAT I WANTED TO BUY AFTER THE ICL. LET ME SHOW YOU WHY I COULDN’T…
EARNINGS REPORTS CAUGHT ME OFF GUARD, SINCE I DIDN’T WANT TO BUY BEFORE EARNINGS AND BOTH OF THOSE EXPLODED HIGHER AFTER EARNINGS.
THIS IS AFRM After Earnings: I’ll now have to see if there is a dip to buy, but this may just run away.
.
THIS WAS PLTR: The same thing happened here with Earnings. I’ll now have to see if there is a dip to buy, but this may just run away.
.
XMTR, on the other hand, sold off sharply! This was on my watchlist as an excellent performer.
XMTR Slammed down with the ICL and then based out. It now looks like it may now be ready to run again? Look at the numbers on XMTR. $12 to $20 to $32 to $45. Correction down to around $31 and now a run out of the ICL. This is a low-risk entry.
.
I actually started to give up on LMND.
This ran from $15 to $52 at the end of last year, but then it chopped down from November into the ICL to below the 50sma and at $30 (at the ICL!). I probably won’t buy this here because of Wednesdays drop, and the 50sma sloping downward, but the 15% Pop Thursday catches my eye. It looks like a back test of that downtrend and now it’s moving higher. A move above the 50sma is bullish, so I’ll watch it for progress. The 50sma is aiming lower and that is cautionary.
.
I have mentioned RKLB when I discussed my watchlist and it really didn’t sell off badly at all with that ICL correction. It has held the 50sma. I posted this chart a few days ago. It was $28.22. Where is it now??
.
RKLB is still at $28.30, but it is still a bullish set up. $4 to $32 and a consolidation, RKLB could start to run again at any time. WATCHLIST or BUY here at the 50sma.
.
GEV (Elec Power) was on my watchlist after they continued to rally after each earnings report. It dropped 20% one day and I didn’t see bad news associated with that drop. It was still getting buy ratings and higher target prices from analysts, so that is still puzzling, but it found support at the 50sma. I am not personally buying this one yet.
.
RR- Robotics stocks may come alive again. RR, SERV, RCAT, ARBE, RBOT, & KITT are on my list. The charts are all good, some better than others and RR is trying to break a downtrend.
.
SERV was a buy recently and is continuing to move higher. I do want to warn that stocks like these can go up 10-18% in one day, and then drop 8% the next, so these are hard to ride, but were rewarding over time. SERV ran $8-$24 November to December/ January.
AAOI was one that repeatedly mentioned and I was definitely looking forward to buying at the ICL. Then at the ICL I felt that it broke down a little too much. It could do a recovery from here, but the 50sma is curling down and I see a downtrend. I did not buy it, but I watch it daily and may buy some later.
RDW and finally -Perfection! That small red spike down to the 50sma was the ICL and off it went higher. It then surged higher while the markets chopped and I missed it. Buying at the 20 ema is likely the next best thing, but it just popped from $20 to $25 this week. I love this chart, but I do not own it 🙁
