OCT 23rd – Public Market Review
I am opening up today’s report to the public. Enjoy.
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Nothing has really changed since the weekend report. The markets have been choppy and difficult to record any gains over the past few days, but I do love the way the Precious Metals sector acted yesterday, so let’s take another look at what we have.
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SPX – You can see that these types of sell offs into an ICL can lead to a double bottom, and Monday our General markets sold off further.
DJIA – You may want to look for something like this
HOWEVER….
It needs to at least be mentioned that after we get the ICL, the next 2 daily cycles will be very important. They can show us 1 of 2 things:
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SPX – The next 2 daily cycles will reveal if this bull continues after the ICL, with higher highs and higher lows, or…
AT THIS POINT I LEAN TOWARD THIS VIEW, WITH GOLD BEGINNING A RUN HIGHER AND MARKETS CORRECTING:
SPX – The next 2 daily cycles could be a dead cat bounce, possibly even a double top here, into what will now be a bearish type correction as shown.
SPX – This is why, and it might now be Precious Metals and Commodities time to shine, while the markets correct. “They” will blame it on elections or Interest rate increases.
WTIC – On day 46 of this current daily cycle, nothing has changed with Oil. I am expecting a dcl any day now. We need a swing low and a break above the 10sma.
USD – The USD has been strong, but it is not affecting Gold greatly. Gold is holding up well.
GOLD – Gold dropped to the 10sma as support, this looks like a bull flag as mentioned
GOLD – On October , I said that I would like to see this. It would be a little more sideways consolidation to the 10sma, and then a POP.
GDXJ 11 a.m.- I Captured this and posted it in the live chat area of the website, to show that GDX & GDXJ drop yesterday was a normal one and the 10sma is being tagged. We would look for a reversal.
GDXJ MIDDAY– We were getting that reversal and this held into the close, so this is a low risk buy if you use the 10sma as a stop now.
I HAVE BEEN POINTING OUT BULLISH ACTION IN THE MINERS. LET’S JUST TAKE A LOOK AT A FEW…
GORO #1 – On Oct 18 – I pointed out that the 10sma is a target that Bull runs dip too.
GORO #2 – I said to add at this area is normal and then we watch for the support reversal to hold
GORO #3 – Yesterday GORO dipped and recovered again, this is bullish action
AG – I pointed out AG as a buy in the weekend report. It dropped and recovered the 10sma
AU – 10 sma Bull Flag
BTG – 10 sma, Bull Flag
So Gold & The Miners continue to act correctly, we have been on a Buy & Hold for weeks, expecting that an ICL is in place. GOLD & MINERS are acting correctly.
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EDIT: GOLD This morning – trying to break from the consolidation. This is a 2 hr chart, it is the Bull Flag that you saw on the Gold charts, so…
GOLD – On October 18, I said that we could see this. It would be a little more sideways to the 10sma, and then a POP.
GOLD IS DOING JUST THAT THIS MORNING – VERY NICE. NOTICE THAT THE 50 SMA HAS CURLED UPWARD
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GOLD LOOKS GOOD THIS MORNING , AND THE MINERS HAVE BACK TESTED THEIR 10 SMA, ENJOY YOUR TUESDAY TRADING!
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~ALEX
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CLF- I mentioned that this may be an earnings shake out, since it crashed and recovered at the 50sma
CLF- It recovered the 50sma yesterday
SBLK – Shippers exploded yesterday with DCIX, SINO and others running up as much as 40%. SBLK and DSX look like Buy opportunities that have not run up yet. You could buy this on the 200sma and use that as a stop. DSX is under the 50sma, you could buy if it breaks above it.
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The Medical Marijuana Sector has been an excellent opportunity to make fast gains since August. With Canada announcing a country wide legalization of marijuana sales in October, and some states in the US doing the same, Revenues have been growing rapidly in many of these companies. That said, I believe we may now be seeing “Buy the rumor, Sell the news”. I think this sector has been eagerly scooped up over the past several weeks and may now need to sell off and consolidate those gains. Let’s take a look at the MJ ETF as an example.
MJ – I am not in a hurry to buy the next bounce, because in the past I have seen consolidations last for months. I try to view it in my head as daily cycles that will make new lows, not new highs. If ( or when) that changes, I will recognize it. This is not ‘Bearish’, all Bulls need a consolidation type rest too. See 5 yr charts of AMZN or GOOG for proof of that.
ACBFF #1 – Last week I had this chart as a warning Oct 19. ACBFF is going to be listed today on the NYSE Tuesday Oct 23. IS THAT ALONE A REASON TO BUY? Or has the Run higher exhausted buying & it becomes a sell the news too?
ACBFF #2 – I want to view it like this to avoid getting sucked in eagerly on any bounce, only to find that it needs more time too. I am personally going to be recommend patience with a focus more on Miners – they are acting correctly.
