Premarket Comments Recap 9/5, 9/6 – Check the Charts

The Entry Points

With all of the absolute crap about stocks and markets that’s put out all over the internet and TV, you might find it interesting to read what we discuss in our premarket comments. We have a daytrading view, and a longer-term perspective view, as it’s what we are doing with our own personal accounts. We do very little marketing, as our work ethic speaks for itself. This business is very, very difficult, and we always remind people of that. We make no promises of immediate riches for people who use our “system”. Those come-ons are total scams. If you’re not willing to work hard, then this trading thing is going to continue to be a struggle. And if you think just blindly following someone’s useless text messages/buy signals is your “ticket”, you’re going to spend the next 10 years making ZERO money. You have to learn how to do this business and take responsibility for your own account. You have two choices – pay someone legitimate who has done this for years, and who doesn’t need your subscription fees to “pay their personal living expenses/bills”. (Do you think it’s smarter to pay someone who makes/made their money in markets, or pay some clown who needs you.) Or the other path to success is you learn it on your own. I learned it on my own, so it certainly can be done, and it’s likely (I assume) easier now than when I was learning markets. There is only one reason I go to all of the other websites out there – that is to gauge sentiment. Because they are always wrong at the turning points – always. I highly suggest looking at the charts, and judging what we’ve said:

9/5:

It’s a “newsy” market right now and there can be some sharp moves and reversals. It’s certainly not the type of market to buy “breakouts”. The stock market is down premarket, but there should be a bounce in there today. The problem is probability-wise this technical situation is nothing like the one which was discussed ahead of time in the 8/28 premarket about “buying the break below support”. That was an awesome setup which was just sitting there – this isn’t. This week should see another high, so we could see a selloff and another rally. But I trade specific setups, not scenarios.

Several times we’ve talked about the election night high in gold as the first target. We hit up against that, and viewing the 1 minute chart, there have been a couple very nice very short-term opportunities on both sides of the market for a leveraged trader. Again, many ways to do this business. To repeat for the 100th time, it’s a bull market and the backups are for buying. I’m still long GDX calls, but sold some more of a short-term NUGT long position on Friday. A few weeks ago we were warning about not extrapolating like everyone else about the miners and silver lagging gold saying “this will change”. I’ll get more specific, but for now there should be another low time-frame-wise….and then the potential for the most…. Short-term trying to set up the support area. There will be quick sharp selloffs. The Yen pair heading back into support, right now trading within several ranges – and look at the two charts and notice something else about the Yen vs gold.

INSM – This stock has reached upwards of 120% pre-market on excellent news. As of this writing at 8:48 AM EST, it’s up 113%. The news is a game changer and has propelled this to multi year highs. There’s a huge resistance area at 29.00 which is not a good place to buy at this point. Will it blast through it? We don’t know. It will certainly be an interesting stock to watch for the next few days to see where it’s going.

BCRX – Up 12% pre-market on news. We’re watching it.

MEIP – This stock is rallying this morning on strong earnings and is up 14% pre-market. This is one we’ve talked about many, many times as a strong stock, and it had the reaction. Watch this one for reactions today if you’re going to daytrade. And if you’re getting long this stock, wait until it settles down to find the support area.

CLLS – I suggest at least observing this one – lousy news, and the opportunity for a bounce. Start watching the bounce potential trades we talk about – those are called bounces for a specific reason.

9/6:

There has been a pickup in volatility in markets recently and that will continue with some short pauses for the next few months. You can use some of the volatility ETFs like TVIX for this, but a big problem with these is they are not for sitting if you’re long. They are leveraged ETFs like NUGT which are horrible performers long-term unless there is a monster move in the direction of the ETF. If you want to do longer-term stuff then long-term options is the only way to go. In the meantime from yesterday’s premarket comments – “The stock market is down premarket, but there should be a bounce in there today.” And another rally. And the bounce is continuing today and I’m using QQQ call options for the bounce. (And a top coming up this week.)

Gold same view – there are a lot of doubters. The selloffs will be sharp, quick, shallow. It’s a bull market. I’m certainly not buying now, but still long GDX calls.

A few months ago we talked about the potential for the final retest in oil in….There are tons of people who do not believe in the secular bull in commodities from 18 months ago. We have talked about the small energy stocks for months and then started to discuss all energy stocks last month. We’re bullish into….

Yesterday’s video about strong stocks is here.

BCRX – We said we were watching this stock yesterday and it catapulted to 5.74 yesterday only to settle back down and close at 4.93. It’s up again this morning 10% on news of a raised target price. If you day trade it, buy the dips and sell the highs. Otherwise, if you’re going long, find a good entry point and hold on for a while. There are gaps and there are other gaps, we point out the difference, please learn these.