Stacking Up

Things are stacking up as expected.

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SPX – it was assumed that we would turn higher here. A low risk long trade.

SPX – this was the follow through as of yesterday, and its still oversold.

 

NASDAQ – The upper trend line could be drawn parallel using April highs as a tip. This would give it even more room to run.

I was watching a wedge pattern in a few of the markets.  They broke down and ‘tagged’ the underside, but the longer this sideways consolidation plays out, the more this pattern can morph into something else.  I am still watching things with  2 differing views.

 

$WTIC– these candles are topping candles.  It can lead to a simple 1 or 2 day sell off, so I expect a small pullback .

 

No big deal, we are still looking at something like this-

 

$NATGAS–  great move and nice volume. This  trade is paying off well in UGAZ

 

GOLD hit resistance . I have mentioned that I didnt expect much from Gold short term.  Was that the DCL day 24?  Or could it drop & do a stop run making a day 30 dcl? Tough call,  Gold is oversold , but weakish. It needs a strong burst through resistance or it will eventually fall.

SILVER –  That is an interesting predicament .  Trapped.  Today will be interesting since a small move will break this pattern one way or the other.

 

GDX –  NEM has been strong but the did an offering and the stock dropped , locking  GDX in this pattern.  The Day 20DCL  is likely too early, and this looks like a small bear flag.   A drop below day 20 ( Stop run) would be normal to me.

I foretold that outcome with this chart so everyone wouldnt go leveraged long

 

The trading in the markets has been volatile and explosive with recent set ups.  Oil and Natgas has played out as expected, but sadly some Energy stocks are responding well and some aren’t.  I want to do 2 things here…

1.   Show some interesting ‘set ups’ for possible trades.  Some are energy, watch them if we do pull back today.

2.  Show how some set ups that I have posted in the past played out bullishly.   The reason for this is NOT to boast in any  way, there are some others posted do NOT play out well.   The point is , this is to show that these set ups can play out nicely, and with a low risk entry and a stop in place, losses are contained and gains can be healthy.  It builds confidence when we see similar set ups later.

 

Here are a few interesting set ups-

 

JD has been mentioning Greece and specifically  NBG in our comments section for a while now. I think yesterdays set up is looking like a real move may come now. Bullish engulfing, higher lows, oversold, etc.  (obvious Geo political risk, be cautious)

Check out  URG, URZ, UEC, URRE, DNN, and UUUU   ( Uraniums)

BOX–  the reason this is such an explosive set up is that its new ( minimal overhead sellers) , and has a solid floor near $17 where buyers step in.  This can be explosive and run fast without resistance on the left side of the chart

 

Experienced traders : See  ETSY, MOBL, DANG, XNET  for a few trade ideas

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Some Energy thoughts-

NDLE –  watch to buy a pullback?

PES is acting very well. Higher lows and near recent highs.  This is a keeper so far.

If oil pulls back, I hope REXX holds the 50 sma line.  Also near recent highs.

Not Energy –

CCIH- Look at the potential. That small move recently was $7.5 to $15.53

 

MTDR– reminder of an older chart.   This has moved higher, acts correctly so far,  and is still a good set up

DMND WKLY–  posted in the weekend report

Just a couple of recent Set ups that followed through-

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GALT JUNE 8- looking for a break higher,  Volume was swelling

GALT 2 days later

 

NQ – I love long bases with a volume POP.  STUDY THAT BASE, it was NOT always fun.  like SFY, GDP, NADL, etc…it was prone to sell off.

VDSK-  Triangle pattern from  April.  Buy the break out  ($24)

VDSI –  $28  June 3, and now this pattern is bullishly aligned

VDSI –  Now is a large base .  You can see how over time  (2 months) some play out in a continuous bullish pattern, though there are pullbacks along the way.  This has a $45 to $50 target over time

 

LESSON:

DSKX–  I had been watching this STRONG healthcare stock,  it doubled  in a month!  It had a long base, and I love those, but honestly – I didnt trust this drop all that much.    It was scary &  looked like a failed bull flag, but it did stop at the trend line.  A reversal would be a low risk  Buy at $2 .

DSKX –  has double again in 6 days since that June 1 drop.  The Lesson for us  starts earlier on ?

DSKX was one of those stocks that had formed a long strong base.   STUDY THIS CHART BELOW

When we see those LONG BASES currently forming in Energy or Gold stocks in the future, the future gains may be special.    If or when  we finally break free and start an uptrend,  it will NOT be smooth & steady all the way.   Look at the sell offs within the bases.  Look at the SELL OFFs after the base break out.    The DSKX chart  helps you to see why I love those set ups and in some I do not sell in the sell offs of a core holding, I add.

 

Exhibit “B”

You know how Thursday & Fridays go.   Todays report usually covers Thursday & Friday and a weekend report will wrap it up and direct us into the following week.  IF something unusual or different from what this report is expecting  happens, I will update . Thanks for reading along and being a subscriber to chartfreak. My goal is always to try to  share with you something that will help you now and even more so, many years from now.

 

~ALEX