One of the perks of being a subscriber of The Entry Points premium content is that Trader Scott sends our members comments every morning about market directions, movements and stocks we are watching for set ups. We release these comments in an edited form afterwards from time to time to allow our visitors a little peak into our premarket information.
July 31 pre-market comments:
The last day of July and the doom and gloomers about gold for this month are running out of time. Hopefully they’ll continue their prognostications for August also. As stated repeatedly since last December, the 2nd half of 2017 for gold itself is when I expect […..] to emerge, like beginning of 2016, only at higher levels. GDX itself from this video 3 weeks ago discussing how to anticipate a higher low – GDX is a big trading range period. And the stock market doomsters/gold permabulls are still trying to get the stock market to crash so gold will soar. Gold and the stock market are going to be rallying big time together down the road.
Still not pressing it with markets and stocks, and there will be more about bigger stocks at times –
XXII – talked about several times (same as IMGN) as an “emerging, emerging strong stock” – a biotech which is involved in tobacco, “smokeless”, “healthier” cigarettes, cannabis, etc. The FDA news on Friday affected the big tobacco stocks like MO, BTI. Actually they had good daytrade bounces. But XXII took the news and rallied, and today issued a press release. Press releases can be pump attempts (short-term). DVAX has also been talked about as a [….] and it’s really doing that today with FDA news. Should be volatile.
NXTD – pump and dump potential, HTB for shorting, it has news and should be volatile.
Robotics company MYO also has news and could be volatile.
Just watching NOVN and ATEN for now.
August 1 pre-market comments:
Summer doldrums are continuing for most markets. The small stocks are struggling, the bigger markets are moribund, but that will change. In the meantime my advice from 2 weeks ago, and it’s basically what I’ve been doing, is either step back totally, or trade smaller and quick trades. If markets are in trading ranges, why do people “gun it”, and think that there’s a killing to be made? We need to tailor our own approaches to exactly what the market is offering, as the market only cares about itself, so to speak, not us. The markets will change again, but we can’t “press it” when there is nothing to press.
The “jobs number’ is on Friday, and gold tends to be weak into it. Time frame-wise there should be a better opportunity next week. So it’s about meshing time frames with the technical situation, and maybe some known news event upcoming could be a trigger. Anyway, silver is lagging. But gold is just in a trading range, within a bigger trading range (which is usually the case with all markets). Please do this type of work with your charts. Markets are about continuity and context. And they spend most of their time in trading ranges, yet too few people have any conception of what that means. This area is a huge accumulation area in gold, and it’s the main bullish catalyst for later this year and well beyond. But all over the place people talk about QE, SDRs, the Fed, the debt, “real” yields, etc, and totally miss the situation. So they use the crappy useless news and buy at the wrong times, and are too afraid to buy at the better times. And then they get bullish/less bearish as the price rises. The stock market is in a major bull. Why? Because of that massive 10 year accumulation area – I’ve talked about this for years. That’s why I am so looking forward to the “crash”, because the huge trend is up. What an opportunity that would be. SPY is [………….]. The Dow new highs thanks to just a few stocks, and QQQ is trading somewhat. I do trade the QQQ at times.
Stocks – to repeat – the momentum stocks need to stick – and right now pure reaction buys are working much better. In a strong market, it’s the other way. And in a weaker market – it’s why I put up the daily chart with the big resistance area(s) marked plainly, once into those areas, the probabilities drop a lot. And check the bounce list page, if nothing else, observe how these things move.
Energy stocks still badly lagging crude oil.
Watching MBRX for a reaction buy quick trade potential. Of course being aware of resistance areas. And CYTR, talked about many times, right into resistance and could see some volatility. It’s had a huge run, so for me it needs a [………………..].
There are a couple of mergers – CBMX, SKLN, JAGX. I’m pointing this out, because be careful of trading these, like with buyouts, [they usually have no potential ……………….]. But just to observe the situation.
Small energy stock [………] – talked about this several times and it has drill results and operations stuff today.
August 2 pre-market comments:
At this point, with the “jobs” number coming up Friday, I’d like to see (not that gold cares) further reactions in gold before the number. It “needs” to back away/back up from this area for a couple reasons, like giving more trade parameters and upping the bearish sentiment. In any event there is yesterday’s intraday video about PMs and the Yen. The little upthrust in silver last night was not helpful, it’s at micro support now. Gold is attempting to form a short-term support area.
The stock market slumber and compression continues, with the short-term SPY parameters. The QQQ does have some movement to it relatively, and you can see the [………]. The TQQQ, SQQQ, and QLD are what I use to trade QQQ. The TNA is a Russell leveraged ETF, for long or short, sometimes HTB. I like to be short the leveraged […..], even to get long the market. Also, I was an option trader for a long time, but it’s disconcerting now to see a swarm of people now interested in option trading. Why are they? Because the markets are not moving, so they are trying to (unwittingly?) leverage the movement. I’ll say it again, the most efficient means of trading is to have […………..], not in your account. The latter one is actually the riskiest, think about it. So people look at small stocks as “risky”, because they see the incredible volatility, yet they have no problem leveraging their accounts? Really?
The small stocks are generally languishing. Please don’t press it. It’s pretty ugly out there.
[………..], when shares are available (not often) is a great way to approach these, but the 1-3 day upmoves can be extraordinary. DRYS had its move yesterday, I sold a quick trade in it yesterday into the close. It will be volatile, but I’ll step aside. DRYS is part of this post about a smaller account.
The most grotesque stocks like [….] are some of the best quick traders, like DRYS yesterday. So to be unbiased, I’ll watch it. [……] (robotics) sort of the same idea. And possibly [….] also in robotics.
AMRN also to watch with […..].
August 3 pre-market comments:
The “jobs” number is tomorrow, and guessing the result is like betting on red or black. In the meantime, the […]is in a range and nearing the bottom of it – 110.30. Gold is in the middle of a range, it had a mini flash crash yesterday, which is good to see. Miners in middle of the range, I have a [….] in juniors, possibly looking to [….]. The stock market in a range, and QQQ also. In other words, summer doldrums and compression. And for people going for big trades and “gunning it” and pressing it, they don’t understand the trading range approach.
Stocks – don’t “press” these things. The big trenders will be back, but in general I’m fine mainly observing, being patient, and taking a quick shot.
MVIS – with earnings
Watching TEUM, MBRX, IMGN
August 4 pre-market comments:
With the jobs number coming in above useless “estimates”, the stock market is up a bit, the $ is up a bit, while the Yen is taking a big hit, and gold is following the Yen a bit. I did a video early this morning about gold and the Yen, to post later. To me, it is good to see gold pull back here, as a rally thru resistance would have prompted me to do some selling. My belief is still a good low next week, but today if miners sell off enough, there could be a short-term bounce trade, if we [….]. The IWM with support marked.
To repeat, it’s summer doldrums, markets (for now) are generally [….], and I can see it in my perusing of sentiment. People are losing interest in markets. Why? Because people think markets are not moving, but actually, they are moving, they’re trading in ranges – back and forth. In other words, [….] trading. But people want excitement in markets, I don’t, to me it’s just a job. But this happens almost every year with the summer doldrums, and the “excitement” will be back. The main point again is that there are not just 2 trends, there are 3, who knew? If you’re not actively trading these stocks, I keep repeating to please observe them, it will help tremendously. Once again do not press this market.
MDRX with earnings, but just trading in a range.
AZSEY – This stock has enjoyed a nice uptrend since 2009 and particularly since June of 2016. Investors may really like to watch this for the big reactions to buy into.