Running With The Bulls?

The  DJIA, SPX and NASDAQ have basically been in a sideways move through most of 2015, as seen in the chart below.  Despite the sideways action, there have been many Bullish set ups and even Bullish action in some of the beaten down sectors . The good news is that it doesn’t look like it is about to end now. Lets look at some charts and discuss this further…

DJIA-  Jan -May was rather sideways

We have discussed sideways consolidations in the past and how they can lead to some nice trending moves when they finally break free…

So on May 13, I pointed out this sideways consolidation in the SPX ,  and how it also could be viewed as a sideways move in a rising channel

 

 

May 4 –  I saw this bullish type pattern forming (not as much of  rising wedge)

 

 

After this weeks close at the highs,  It looks likely that there could be a break to the upside. The run higher after this consolidation could be significant.

The NASDAQ broke down & recovered so…

The NASDAQ WKLY also has a bullish look to it.  I’m still eying this Wedge pattern, but if it breaks ABOVE the wedge, there is more upside. This is  a long consolidation.

 I have been bullish on the Commodities lately. OIL, NATGAS, the CRB,  Metals and Miners have traded well.  WHEAT ( see  ETF WEAT) Popped last week and Sugar and Coffee also look good.   The dollar is up $0.50 this a.m. and Gold,Silver and OIL  are also Green, so that is encouraging.

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 OIL –  Still Bullishly climbing higher,  with small dips & sideways consolidations as expected

 

XLE MAY 5 –  As for Energy stocks,  I posted this .  We expect dips for the move to remain healthy, so I figured a dip to the 50sma  (maybe sideways) would be possible.

 

  XLE is doing just that, working off that overbought situation in the chart above ( Magenta circle)

 

NATGAS:  I dont like to try to predict every drop & every surge, I want to just say that it is still a bullish set up.   Many here trade this with leverage,  so just realize that drops will come and that is normal.

 

 

GOLD- I expect more upside.  Gold surpassed the prior cycles highs.

 

Gold has its Daily Cycle low in place and this next run can be profitable  (Green Line).  GOLD has a Higher low than the last ICL in Nov.   A higher high above January’s $1307.80 would be very bullish! It could indicate the end of the Bear Market in Gold of the past few years.

 

 

SILVER MAY 13  – We got our break higher for a bullish move,  but…

 

 

Did SILVER really break out last June and back test with our Nov lows?  THAT is Bullish.  Is this bear market ending and returning to a Bullish resumption? Time will tell.

 

 

GDX–   I have already mentioned that many Miners are bullish set ups and have been acting better than GOLD & SILVER were. GDX was very right translated, and has now made new highs in this current uptrend.

 

 NEM is a big part of GDX  and it remains bullish.

 

 

GG has been a weaker large component of GDX,   but last week began shaping up. It still has a higher low than December .

 

LESSON:

I wanted to throw a quick lesson in here before discussing some Mining & Energy stocks.  In the past I have mentioned how much I like stocks that get beaten down to an extreme in a beaten down sector that should recover.  For example I’ve mentioned this when discussing our OIL Stocks recently, and also Energy stocks and Miners in the 2008 sell off.   They got beaten down to ridiculous levels and can recover over time.  I made my best investments then.   The lesson is that this usually happens after forming a base first & rises  ‘Over Time’.   It can take time for a stock that went from $30 to $5 , to get back to $30.

 

SO THIS IS THE REMINDER:  These trades often take a long time to recover and it is not straight up,  but can be very rewarding.  This reminder is for any who want to accumulate a position and hold.  You may be holding for a year or more.

  So this was EXXI in 2009 – 2011.  It dropped from   $35  to $1.18!!  It eventually made it back to $35 , but please notice it was 2 yrs later and it was NOT straight up.  In time , it was also VERY REWARDING.

 

 

This is a tech stock recently at Highs of $37.50.    It Dropped form $20 to $4 in 2011,  but then recovered to new highs.  Notice that is was not straight up. It formed a base and ran up over the years, with scary drops along the way.

 

I mention that above lesson because I am going to point out some of these base patterns forming again. If Energy and Miners are bottoming,  they could be great opportunities over then next 2 years.    They arent going up 500% by the summer and they will not be straight up.  They will have wiggles and drops, but in time they could be huge %-Gainers if Oil, GOLD / SILVER make their recovery.   Also they can be ‘Traded’ as they break from their base,  pullbacks can be bought, etc.   Traders raise stops as they Pop.  We have been doing this in Energy already.

 

In prior  weekend reports , I have hinted at the idea that GOLD may have put in its lows in Nov 2014,  and in this report I pointed out that SILVER may have broken out and back tested already too. Miners have been acting quite bullishly since the November lows too.  SO Let me discuss some of those long bases in various  charts for Miners.

I mentioned BVN on MAY 1, because it has that base and certain characteristics that I look for before a pop at $11.

 

It has now POPPED

Close up I showed this daily on MAY 1, readying for a break.

BVN now.  Watching how this pulls back may provide an entry.

 

BAA WKLY–  I was really loving this base and said I was accumulating it  before a POP that I expected.

 

It popped to $0.35  on the daily,  but hardly looks like much on the weekly. I think this could be a great % Gainer “OVER TIME”

 

 

I pointed out XRA  as one of those tight bases to keep an eye on.  I do not own it, and I have a hard time getting its earnings.

TRQ–  Popped from $2.65 to $4.45 and is holding up in that price area.  These are examples of what I have been discussing.

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EGI popped and is pulling back now.  I am keeping an eye on it.

 

 I like REN for it’s base  ( Its an Energy stock, earnings are out and I own it)

 

 

 I pointed out the base & pop in  ZBB . Expected a pullback to the 10WMA??

 

 

It became a buy last week at $.079 on the 10 WMA.  It may offer another entry this week, the stop is just below that 10WMA, maybe 70 cents.

 

 

MGN popped , but didnt have the super long base.  The last time it did this, it ran strongly.

 

 

SVLC – I bought this as it and Silver popped.  It is currently only $1.17, I like the volume pops.

 

AU – is a good example of a Miner that was thrown away and may make a great recover over time. $50 down to $7.45.  It looks to have bottomed in Nov.

 

 

RIC and LSG are strong and almost ignore the price of the metals .

 

 I have pointed out a few Silver stocks that I liked.  I posted  charts of SSRI, HL, EXK and a few more.  They are all doing well.

EXK- I pointed out this buy and expect more upside.

 

FSM, HL, EXK, SSRI, SVLC, AKG, MVG, SVM, AG etc are silver stocks that I like .

URANIUM stocks really look good again.  On the daily they are pulling back, but the weekly charts look good.

Rare Earth are good for trades

Many TECH STOCKS look good .

Some of the weekly charts in Solars are interesting,  but they are difficult to trade at times.

This is JASO for example.  $2.91 to above $13,  currently near $10.

 

  I want to release this report well before 8 a.m. since it is a long one ,  so For Experienced Traders  I’m just going to throw a few names out there for you to be able to look at the charts .

  TECH STOCKS that look interesting can be

 

  MOMO,

See Bullish Charts :  AMBA, ZAGG, BONA, RVNC  ( Some like  RVNC  need a pullback first) ,

 

SPTN

SOME SHIPPERS look very interesting.   See   TNK, FRO  both trending higher & moved back above the 50sma , SALT, NAT, SB (Base)

 

So there are a lot of trades out there , but I am personally focused on ENERGY & METALS for their current moves higher.  Some have been making   very good % gains already after consolidating.  Please  be aware that  earnings on some may not have been released yet.  Many of the Miners have been releasing earnings and popping higher. I also feel that most should continue to run with this second daily cycle,  and I plan on covering this area as the move in Gold, Silver, and the miners unfolds.

I hope you all had a great weekend and welcome back to trading & investing! Many set ups look great.

 

~ALEX