Looking Ahead

/51 Comments/in /by

Mid day thoughts…

We are seeing a slight selling in many of the Miners and energy stocks today.  Oil is selling of , but many energy stocks are holding up well and seem to have put in temporary bottoms. So is this a buying opportunity?

By now, we should have positions in Miners, GDX, GDXJ  or whatever vehicle you prefer  ( I do not recommend 3xETFs but I do trade them).  I had been mentioning that I also developed a ‘Sideways bottoming’ set up for GDX that triggers a buy after going sideways and showing strength.  It too has triggered as of the selling today.

 

GDX–  this set up even looks more likely to put in an ISLAND BOTTOM. If it gaps open higher tomorrow, how will you enter a new position without fear of a gap fill?

GDX 8-11 3

 

GDX – intraday , has the look of a Bull flag. It could fail, but it may also break higher with GDX closing GREEN on the day.  Overall, the daily charts are bullish, even if this flag breaks down.  Have you entered on this pullback today?  I think the pullback this morning was a gift to those with out positions.

gdx 8-11

 

Reminder : If you feel that we could pull back more,  just start a small position and add when the picture gets clearer.  If you are confident based on what I have been showing over the past couple of weeks ,  that we are going to rally higher for the next few weeks,  then take a good position.   Some Miners are still near lows, I mentioned some in this mornings report. They may begin to play catch up. Others are just past their 10sma and could be considered a safe buy too.   Others like  SA  have taken off higher and are probably too extended to buy here.

 

Many SILVER stocks are popping nicely. ASM is just getting going.   FSM dropped to tag its 10sma  ( BUY) .   EXK, SSRI, AG, MVG, SVM, SVLC,   PAAS all popped,  but some like PAAS are  still somewhat near lows.  Thats a low risk entry with a stop loosely below  (It could still drop to it’s 10sma, but may not).

FSM

Best wishes on your trades!

ALEX

 

–  Due to the possible bull flag forming ,  there no time to proof readthis.  I need to release it.  please excuse typos if there are any  🙂

51 replies
  9. Geurt.
    Geurt. says:

    Hi Alex, you said in this report: “Others like SA have taken off higher and are probably too extended to buy here”. Do you think after rallying still to buy here at the price from today?

    • chartfreak1
      chartfreak1 says:

      Hi Guert,

      It cannot be recommended to buy a stock up 70% off of its lows, because a mere 50% pullback of that run higher would be too painful.

      Personally I think SA on a wkly chart is a V-Bottom and may not pullback. It is recovering, but I still I cannot recommend anything on this stock .

  12. LeChiffre
    LeChiffre says:

    EOD favorite miners. (refresh)
    Strong finish. GDX closed with gusto. Gap up foreseen by Alex???

  13. LeChiffre
    LeChiffre says:

    Bought Calls on REXX. couldn’t help it. red to green move off 10MA.
    plus insiders are going at it.
    (refresh)

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