Assuming Leadership

As a follow-up to my morning post and ongoing analyst of the precious metals and miners, it appears silver is temporary assuming the leadership role in the space.

On the intraday chart, you can see the silver ETF chart coiling all day. This a tight consolidation on this particular timeframe, though the overall picture remains sloppy.

Gold miners are coming in some today, though are still within yesterday’s price range.

Thus far, the upside reversals from last night in the metals themselves are largely holding. Further upside from here should bode well for a bear trap on the recent downticks.

SLV now likely need a move over $19.
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Here we have a 15-minute IWM ETF small cap chart stretched back several days, illustrating the wild price swings we have seen of late.

In particular, today’s action has featured violent moves, with some selling coming back into the market just now. We have yet to see resolution from the consolidation after an initial snapback rally last week. So, I am staying extra nimble with a tight leash on all positions.

While Apple continues to shine, I still do not view the stock as a market leader. Marquee names like NFLX UA are being sold down after reporting strong numbers.

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Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

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I covered my GM short inside 12631 last week to lock in initial gains after the head and shoulders topping pattern, seen below on the daily chart, confirmed.

After earnings this morning, the stock spiked higher but reversed into the red, even as the broad market stabilized.

I am still looking at this stock as topping out and ripe for a move back into the mid-$20’s.

If I see some more downside rejection tomorrow or early next week, again away from $34, I will hop back into a short.

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The dramatic upside reversals in gold and silver this morning, after glaringly weak overnight sessions, are giving precious metals and miners bulls one more, perhaps their last, shot at cementing a major bottom.

Will they fumble the ball again?

One thing is for sure: I am not looking to be dogmatic here. If bears are correct, I will not go down with the precious ship–My escape hatch is two steps away from me at all times.

I locked in a piece of my NUGT win yesterday inside 12631 and could easily sell out of my other positions by the time you read this blog post.

We have a fast market on our hands, equities and otherwise. Therefore, it is probably best to tighten up even more.

Watch the gold ETF over $124.25 intraday to see if we get a secondary thrust higher.

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https://www.youtube.com/watch?v=HhcmTOm5n-k

Many restaurant stocks, such as BLMN FRGI TXRH, have been sold hard of late. Beyond that, and perhaps of more significance, they look to be on the cusp of breaking down from multi-year topping patterns.

With this in mind, Middleby makes many ovens catering to the restaurant space.

On the multi-year chart, you can see the very steep rally. I would consider this stock a short to prospectively get hit on pin action selling.

On the long side, a few ideas which have held up well: EQT GDP KFY RSPP 

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