Friday February 20th – Can We Get Some Follow-Through?
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The markets initially dropped, but they started to bounce back too. The IWM made it to green. I am hoping that we have a first daily cycle behind us and that this is the start of the 2nd daily cycle. I do like the set up on several stocks that sold off.
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THE SPX gave us a doji, so we really need more time to see how these markets play out. What about some of the stock that sold off recently?
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The stocks below seem to be shaping up bullishly after selling off, so I wanted to share them here. Keep in mind that it is still a mixed picture with the IWM, SOX, DJIA, SPX, and NASDAQ, and it’s hard to know for sure if we really have started a second daily cycle that will be strong…or… will we continue to see choppiness? We need follow through higher. So these stocks look like buy the dip opportunities or short-term trades for now, but I remain cautious. I would keep it small if you decide to participate.
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RKLB went from red to green and started to also break resistance, so I posted this.
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RKLB was only up 3.31% by the close, but it is breaking a downtrend and the 20ema / 50sma. The MACD is curling upward.
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Take a look at the numbers on some of these charts. LUNR ran from $8 to $23 from the November ICL to the peak. That was almost a triple! Now it dipped to the 50sma, did a shake out, and may be starting to push higher again. IF THE MARKETS are in a 2nd daily cycle, it could run back to the highs and more, but I’d start slow in these markets until we get further confirmation of a 2nd daily cycle that hasn’t failed.
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FIG was in my ‘AI’ watchlist and it started to bottom out recently. They released earnings and it gapped open, slammed down, and started to run from red to green again. Earnings had a strong beat, so it may have bottomed and could run higher over time. The volume is high; it may be a little short covering with some buying.
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MU has been mentioned before as a strong semiconductor stock coming out of the April ICL. It actually ran from $62 to $100 rather quickly, but guess what? It ran to $400…
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MU has been running steadily higher, then it consolidated at $2o0 for the November ICL and it has already doubled from there. This looks like a buyable consolidation again.
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The DRONE STOCKS: UMAC, RCAT, ONDS (there are others)
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UMAC broke the downtrend and was pushing into the 20ema just before 10a.m.
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UMAC – By the end of the day it was up 7.5% and it looks like a clear break. Even though it could become choppy like the run from Nov to January ($7-$20!), it seems ready to move higher again.
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RCAT was in yesterdays report as reversing at the 50sma and pressing on a downtrend line. When a down trend is broken, it is a good sign. It’s not 100% foolproof, but it often shows enough strength to break the selling down and start a trend higher.
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RCAT – As the morning progressed, RCAT was up 9.44%. It pulled back again, like it did the day before, but it DID close above the downtrend and that 20ema.
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I wanted to point out the recent consolidation in Copper by using The COPX ETF. Each time Copper has consolidated, it then makes another nice run. We are currently in a consolidation. It may even stretch to the red 50sma like it has in the past, so keep an eye on it. You could start a small position now and add if it bottoms on the 50sma.
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TGB is a copper stock that I pointed out in October when it dropped to the 50sma. It had been a buy at $3 in August, now a buy at $3.75…
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TGB ran again from $4 to $9 and now it is in a consolidation between $9 and $7.50. They released earnings Wednesday after hrs and it dropped below the 20ema. It may work its way to the 50sma as a buy, so this is on the daily watchlist.
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WTIC – Oil surged this week and on Thursday it broke from that triangle that we have been watching. That may be a dcl that formed inside of the triangle. Oil stocks were consolidating too, and they started to push higher.
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GTE has a similar set up to Oil and it broke out too. It closed at $6.09, so it actually broke out, but it hasn’t run away yet. This has obviously been very choppy and that may or may not continue.
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BORR – I posted BORR as a buy at the last consolidation and it has been running higher. I have it here today because they released earnings (good) and it is pushing higher. If it dips and Oil remains bullish, this is buy or add on the dip.
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WTI -I also had WTI as a buy back near the $2 area and it rallied strongly, dropped sharply, and then rallied yesterday when Oil broke out. Many that I mentioned in the past, like WTI, VET and NOG for example, the long-term charts are bases or have good potential, and this would be breaking from the base.
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WTI WEEKLY– You can see what I mean here. WTI seems to have based out and looks ready to run higher if Oil remains bullish.
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GOLD is in a consolidation after the recent slam down.
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SILVER is also consolidating gains, but it can’t even get above the 10sma yet. This kind of price action can continue.
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GDX – While Gold and Silver consolidate recent gains and recover from the sharp drop, some individual Miners may continue higher and the GDX actually looks slightly better than Gold. For example…
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The other day IAG released their earnings and the report sounded great. IAG did a pop and drop, but it started to push higher yesterday again. I am surprised that it isn’t at new highs yet, but it could push to new highs if buyers continue to step in, even if Gold churns sideways. The MACD gives me the impression that it could push to new highs, but remain choppy.
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So Thursday saw price in the general markets continue to chop a bit, but it seems that some stocks are stabilizing. Drone stocks, Aerospace, and a few other sectors did bounce and then sold off last week too, so I am cautious, but I’m hoping that we are seeing a 2nd daily cycle that will gain strength and these stocks are just starting to find buyers ahead of that. Time will tell. As mentioned in past reports, I am also looking at some stocks that are less affected and still acting bullishly, like retail, shippers, maybe Oil Stocks, Industrial stocks, etc. I’m going to look at set ups in other sectors like that and see if there are any good entry points on some of those – MU is actually a good example of a bullish semiconductor stock in todays report, that has consolidated gains and has not turned bearish looking (yet anyway). Walmart, Kohls, and other retail stocks are chopping higher too.
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We’ll see if our Friday gives us some follow through higher. Enjoy your Friday trading and your upcoming weekend!
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~ALEX
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BITCOIN – We keep seeing similar lackluster performance in the Bitcoin area, but it was interesting to see several Crypto stocks up yesterday and many look as though they are basing out sideways. If Bitcoin can push higher, the stocks seem ready to bounce. They could become a good short-term trade, since they do pop 6-10% or more at a time, but it is a risky trade in the longer term.
