Eventually it’ll get tired, but for now…
JULY 3 …. Part 2 Some of the set ups from Part one (Open this report & scroll down for Part 1 July 1) I still see as valid like GOGO, TEAR, and a few others. Others, like the 3D stocks, burst higher & now one can watch for an entry as they ‘test’ break outs. NOTE: If Markets head into a “Correction” – these Tests can fail. If the Markets remain healthy- Could be buying opportunity.
To start: A few more charts of possible Trade Ideas & a quick “lesson”. As I write & Chart (7:00 A.M. EST) Silver & GOLD are dropping fast. I see Silver like this…no worries yet-
This next chart shows that a correction is healthy & GOLD is still fine too…
GOLD as of JULY 2- a correction to $1300 is normal (lower is acceptable too)
I want to do a quick “Lesson” on the Running correction appearing in SILVER as shown on our first chart. Notice how this running correction appeared after repeated sell offs? Read what I’ve written on the chart to explain it. It looks much like the current consolidation in SILVER.
It played out like this before topping…
Will SILVER do that if more shorts “cover” or BULLS start piling in? MAYBE…but we need also to note that SILVER is quite “overbought”
It already had the short covering & POP in JUNE. Its as overbought as when it topped in Feb…so I am including this chart to just show what I am watching in Silver with its current “Running Correction” . SILVER COULD POP to Feb Highs & top or just correct here for a few days.
I was watching SOLAR STOCKS and interestingly SCTY currently has a running correction too & is overbought. WATCH SCTY & maybe Silver does the same? It Popped yesterday & Reversed (So far)
Solars ( FSLR, SCTY, SOL, RGSE, YGE, JASO, CSIQ, etc etc ) seem to be setting up above their 50sma & seasonally do well in Summer months (See 3 yr charts for example) Obviously I cant post all of those charts, so just SCTY & YGE
Some other set up ideas …
And please scroll down and see TEAR, GOGO, etc I also like URANIUMS and was watching URRE, URZ, URG, USU (Unfortunately USU broke out in a HUGE way yesterday & I froze watching it run away. URZ and URRE still look good to me.
URZ is a buy at the bottom of the channel & NOW, because it has broken out
IN my May/Early June GOLD report (You can look them up) I recommended some “SET UPS” in Miners. Lets see how a few of them did – it may help give confidence to buy points in a chart pattern. These will be 1st my recommendation chart, then now…
EGO
1 month later
NG
1 month later
ANV
1 month later
Hopefully that helps readers to see how some chart patterns are used in forecasting that the Selling is complete and buying should begin. Getting in near the lows gives one the best %-Gains out of those lows. Corrections offer the same “Buy set ups” and I plan on posting another list of good looking candidates soon. For now, we have a 1/2 day & MKTS are closed for the 3 day holiday weekend. Enjoy your time off & families, but please be safe!! And thx again for reading along!
~ALEX (Below is the original report with some valid charts remaining)
July 1, 2014 Well, this market has been running very well for a long time. Eventually it will get tired, but as long as you keep that in mind and stay alert while you are trading, you can definitely still trade proper set ups successfully. I wanted to present some charts of some possible ‘trade ideas’ and leave it to the reader to choose one or two that they may also see as a good set up.
TEAR – Above the 50 SMA and the 50SMA is turning up, looks ready to move out of its base
More charts ….
RIG – A rounding bottom seems to be occurring with a break out & “test”
KNDI WEEKLY & DAILY CHARTS….runs well when it gets going. Possible double top coming if Markets keep running
The 3D printer stocks run strongly . For your watchlist – XONE, DDD, SSYS (currently extended)
I think the set up in GOGO is quite bullish
You want JVET on your watchlist if these markets keep running! Its a ROCKET!
There are TONS of these types of set ups out there, unfortunately time doesnt permit me to draw them all up & post them. They can be quite profitable as trades.
Lastly I want to mention this. I Tweeted & posted here yesterday that I was seeing a low risk buy in GDX/GDXJ, thus many Miners and JNUG or NUGT. This was the 1st buy point JNUG $24 area , for example… Another was the break out from the channel…
But I want to point this out…
If you’ve read my other reports since the End of MAY….you know that I expected the 1st leg up out of “Meaningful Lows” in GOLD/SILVER/MINERS . I then expected a consolidation, maybe a bull flag, and then a break out into a 2nd leg up , likely of equal length to the first leg up.
I am posting today that this move higher yesterday MIGHT just be a fake out type move higher to suck in more longs. The consolidation then continues for a few more days. What happens is-
1. After a quick burst higher (longs enter positions)
2. Then you get a quick drop for a few more days or so to shake them out & Shorts get excited & they then go short
3. Next is the REAL Move higher ( 2nd leg up) where a reversal happens & “Shorts cover” — “Longs buy” and eventually “Chasers add”
4. Then its –Wash – Rinse – Repeat
This is an example of a similar false breaks higher out of a bull Flag…so just beware that we may still be in the consolidation phase between leg 1 up & the 2nd leg that is to be expected. If so…Buy the next dip!!
Thanks for reading! Please remember that the markets can change (the VIX remains low), so while I expect that some of these ideas can become profitable trades — always stay alert and use stops after entering a position.
Best,
~Alex
excellent..thank u for all u do. especially luv the highlighted ‘signals’ so even my nit wit b4 coffee brain can easily spot them.
Thanks for stopping by & for the feedback. ( I’m not as sharp without my morning Jo either) : ] I should have mentioned that On the “watchlist” ones, I want to see them reach the buy area or support areas on lighter volume – or they may crash thru. I often just Watch for a reversal.
Best wishes
ps. Holy giant ‘cup’ on RIG. Also, on gogo..what do u mean by runnug? 😉
Oh…you mean on the GOGO chart. Well, it means 3 things
1. Testing my readers for alertness (you passed)
2. I have a fat finger, the “U” is next to the “I” = ” Running Correction”
3. seeing which readers will pick on me, then blocking them (JUST KIDDING)
If it was a typo in the report I can change it, on the chart – its too much work, so we’ll leave it & test the others.
excellent..thank u for all u do. especially luv the highlighted ‘signals’ so even my nit wit b4 coffee brain can easily spot them.
Thanks for stopping by & for the feedback. ( I’m not as sharp without my morning Jo either) : ] I should have mentioned that On the “watchlist” ones, I want to see them reach the buy area or support areas on lighter volume – or they may crash thru. I often just Watch for a reversal.
Best wishes
ps. Holy giant ‘cup’ on RIG. Also, on gogo..what do u mean by runnug? 😉
Oh…you mean on the GOGO chart. Well, it means 3 things
1. Testing my readers for alertness (you passed)
2. I have a fat finger, the “U” is next to the “I” = ” Running Correction”
3. seeing which readers will pick on me, then blocking them (JUST KIDDING)
If it was a typo in the report I can change it, on the chart – its too much work, so we’ll leave it & test the others.
Good stuff Alex!
Hey, If SIMONSAYS – ‘good stuff”, I’m not going to argue. : ) No, seriously Thanks SIMONSAYS (Did you see the VJET & XONE (DDD, SSYS, etc ) tho today. WOW! I wanted to buy the pullback, those are Rockets today. ‘ TEAR’ was a buy today
Yes, your ability to multitask never ceases to amaze! Well done buddy!
Good stuff Alex!
Hey, If SIMONSAYS – ‘good stuff”, I’m not going to argue. : ) No, seriously Thanks SIMONSAYS (Did you see the VJET & XONE (DDD, SSYS, etc ) tho today. WOW! I wanted to buy the pullback, those are Rockets today. ‘ TEAR’ was a buy today
Yes, your ability to multitask never ceases to amaze! Well done buddy!
Great information. Thanks
Thanks CS
Great information. Thanks
Thanks CS
Alex, dipped a toe into tear before it went on a ‘tear’–thank you! :-). I had thought a price target short-term of $6 before getting in. is that too pessimistic or have we come too far too fast? Again, thanks for the awesome work.
Deshy – I tend to think it depends on the markets . If they went parabolic thru summer, I see plenty of upside . If the VIX takes off & markets correct strongly, I would think many of these would follow. ( I see that it POPPED strongly, then dropped. it May “test” the break out on that triangle that I had drawn. Should hold there tho). Thx for reading!
Alex, dipped a toe into tear before it went on a ‘tear’–thank you! :-). I had thought a price target short-term of $6 before getting in. is that too pessimistic or have we come too far too fast? Again, thanks for the awesome work.
Deshy – I tend to think it depends on the markets . If they went parabolic thru summer, I see plenty of upside . If the VIX takes off & markets correct strongly, I would think many of these would follow. ( I see that it POPPED strongly, then dropped. it May “test” the break out on that triangle that I had drawn. Should hold there tho). Thx for reading!
Hi Alex, thank you for the awesome charts. Is MVG on a buy already or it’s better to wait till the cycle lows hit early next week? TIA.
JV – That is a tough call. The reversals in some silver stocks were strong today. Look at FSM (new recent highs) CDE (no pullback) EXK & GPL = bullflags. Since we know we are very close to a Cycle low, one could buy a starter position & add later on any pullback or break out. (Click on the mini charts if U see them)
An A-B-C up leads to $13+ , Put MVG on a weekly and see where that leads to ($13) ; – ]
Alex, great charts – thanks for sharing. Stalking TAN for an entry next week into Solar. Cautiously optimistic on silver and gold miners. Have a great 4th.
Thank You Cason-
I could be wrong, but there is a chance that TAN will pullback to its 50sma first, I’d watch to see how it approaches that area. It COULD just burst higher, but the 2nd bounce here looked a tad weak. (click on the chart)- Thx for reading!
Alex, really appreciate the follow-up. TAN banged off the 50 this morning. I scaled in a 50% this afternoon at 41.62 – not a perfect entry but $3/share below where it was Thursday. Updated chart was key!
Thats a better entry for sure…however Watch it carefully. I didnt like the high volume with the sell off today & it “MIGHT” follow the mkts down some more. FSLR & JASO closed below their 50sma, so Need to consider that & TAN = The MACD crossed down too…so basically, it DID drop as I thought, it DIDNT drop the way I like (light volume) so it could go further. Best 2 U
Hi Alex, thank you for the awesome charts. Is MVG on a buy already or it’s better to wait till the cycle lows hit early next week? TIA.
JV – That is a tough call. The reversals in some silver stocks were strong today. Look at FSM (new recent highs) CDE (no pullback) EXK & GPL = bullflags. Since we know we are very close to a Cycle low, one could buy a starter position & add later on any pullback or break out. (Click on the mini charts if U see them)
An A-B-C up leads to $13+ , Put MVG on a weekly and see where that leads to ($13) ; – ]
Alex, great charts – thanks for sharing. Stalking TAN for an entry next week into Solar. Cautiously optimistic on silver and gold miners. Have a great 4th.
Thank You Cason-
I could be wrong, but there is a chance that TAN will pullback to its 50sma first, I’d watch to see how it approaches that area. It COULD just burst higher, but the 2nd bounce here looked a tad weak. (click on the chart)- Thx for reading!
Alex, really appreciate the follow-up. TAN banged off the 50 this morning. I scaled in a 50% this afternoon at 41.62 – not a perfect entry but $3/share below where it was Thursday. Updated chart was key!
Thats a better entry for sure…however Watch it carefully. I didnt like the high volume with the sell off today & it “MIGHT” follow the mkts down some more. FSLR & JASO closed below their 50sma, so Need to consider that & TAN = The MACD crossed down too…so basically, it DID drop as I thought, it DIDNT drop the way I like (light volume) so it could go further. Best 2 U