In our previous update last week, we could see a lot of sectors pointing toward a climactic selloff and bounce. (left Click on charts to expand , or right click "view image" for the larger ones)
AAPL - It was already champing at the bit on its way down in the 540s, but we went straight into the strong support areas (channel bottom, 161 5 yr. fibonacci line) and put in a hammer reversal bar on huge volume last Friday. The initial target of the gap around 575 or a 38 fib bounce has largely been achieved. A pretty easy trade if someone was looking to chop out 10% of a trading position to hold longer term. The gap below is not going to hold, and we wouldn't look to hold anything if we go over 600 on this move. This whole year's move was a megaphone top, not a cup and handle breakout as wild-eyed enthusiasts often want to infer from new highs. Not going to zero, but, at best expect trundling and rolling sideways action for a year as we've seen in it's chart before. Much higher rewards elsewhere and lots of competition coming.
UEC - This relatively strong up and coming U producer filled the gaps we liked as entry points in the 2.02 area and tailed below that toward lows of the base. We got a good bounce here, but like everything else, there was a little gap Monday. It's best to chop out some small gains for a longer term hold and look to score a bigger position the next ttime down . There is deep value here in Uranium. Sector bellcow ,CCJ, also filled gaps at 52 week lows.
Freaked out gold stock holders should take heart in the chart below. It isn't a gold chart - it's a chart of JPM over the last year. You can see the double bottom and subsequent flag pole breakout rally, followed by the fakeout fan / retracement, which then collapsed into the air pocket which had been created by the flag pole rally. This chart looks exactly like the current charts of NEM, ABX, and some other large GDX components.
To me, it shows the latest action in gold has less to do with fundamentals than it does with bamboozling investors with wild and senseless fluctuations. Action around the midpoint of these wide range breakout bars is very important to monitor. If they are retested and the lows are taken out, an horrific ttap situation is set for longs.
NEM - Look familiar? But at least it is regathering at the lows, and we can see from the JPM chart above, there is no reason NEM can't crawl right back up to fill this gap over the winter season, given some strength in gold.
SPY - Oversold bounce continues as we fan back toward the last major distribution bar in the 1400 area on the SPY. Look for another pasting to the indices as we trade in a range from there to below our recent lows. Gaps in the base from earlier in the fall did not fill. There is still some strength out there in some sectors, but it just looks rotational.
FST - More deep value in oil and gas. We looked at this one last time, expecting a bounce after filling some gaps under the 6.40 area from earlier in this base. There's a trade to the low 7's in the gap area / fib bounce area of this base. This was a $40 stock - all of 18 months ago.
Gee, I guess we weren't really running out of oil and gas after all. But use the bankster games to accumulate profitable operations like this. And make sure their operations aren't in the bombing run targets of the next war. Making a buck on these situations should be like shooting fish in a barrel. 80% range just in the latest base alone.