Gold and silver had pullbacks off their recent highs yesterday and I’m once again seeing people call for giant drops in them both. They are basing this all on one days action. I’ll talk more about gold and silver in a Power Investor update this weekend.
Yes the triple ETF’s NUGT and JNUG got crushed, but I’d note that most small cap mining stocks barely pulled back. Look at Aftermath Silver for instance.
Now the action in the US stock market averages was more meaningful as they finally broke out of their indecision pattern yesterday by closing above their 50-day moving averages. Take a look at the S&P 500.
If this move didn’t happen yesterday then we would have likely seen the stock market averages fall through a trap door by the end of this month. Now that the bulls are finally in control for now there are several stocks that look like they could trend higher for a few weeks.
Check out FISV, which is near a 52-week high and has held up well in the past few weeks during the market volatility.
And ROST stores made a new 52-week high on Thursday.
And after weeks of seemingly endless daily drops it finally looks like the dope stocks are ready to run as they are deeply oversold with indicators ready to turn up. Check out ACB.
The daily stochastics for ACB crossed above 20 yesterday to give an oversold buy signal. It would help so many people if this stock could at least rally up to its resistance downtrend line as it remains the most owned stock by the most number of people on Robinhood.
Dope stock CGC also did the same.
I’m really not interested in buying these two stocks as investments, but I get so many emails about them and other dope stocks as so many people are in them – and I have been down on them for months and finally there is some hope we can see in the charts on them!
And traders can play that.
Disclosure: Michael Swanson has bought 200,000 shares in the private placement offering of Aftermath Silver mentioned in this post that includes 100,000 warrants with a strike price of 12 cents CAD. The shares have a four month hold from the date the offering closes. Because Aftermath Silver is a small cap stock with a market cap of less than $100 million he also is placing himself on a voluntary 30-day trading restriction period from the date of this post in which he will not buy or sell a share of Aftermath Silver stock. Some members of his private Power Investor membership group have also invested in the private placement and other members may have bought the stock in the weeks and days before this post as he made it a Top Seven Trading Position in the group in June in which he tracks his most favorite positions in a model portfolio. To join the Power Investor group yourself click here.