Muathe.com

The market has not changed much technically despite the daily drop. We continue to stay with a bullish expectation UNLESS new data tells us that support is broken and the charts are too damaged for any immediate rebound. In this video I also mention the following stocks that are currently on my watch-list (should the market rally from here); ANCI, BIOF, CTRP, DANG, DXCM, ENG, GEO, ITUB, KNDI, LEAF and TSLA. I AM expecting a meaningful rebound BUT I will accept whatever direction the market decides to explore. Light!

Let's see if the NASDAQ [4,531] continues to stall around here. If it does then expect the next short-term direction to be lower. I have added two new ideas just in case the NASDAQ clears current DAILY RSI highs: ANET [$77.88] is a buy above $76.41 and BBRY [$9.85] is a breakout buy ONLY (AND ONLY IF) it moves and stays above the recent monthly closing high of $10.24.

Why fight the trend? We all know that the market can't go up forever yet we have yet to see the monthly charts give us any sell signals. It could be that in the coming week(s) that the Gold and Silver trade confirms weekly RSI resistance.

The general market seems to be setting up to pull back so I would not be aggressive in buying any long ideas here until the hourly chart set ups change back to a positive outlook. As far as the metals are concerned, I could believe that around $1,306 the Gold index stalls short-term (only) but if you give it 12, or 24 or 36 months out then around current levels is where you want to buy the 'metals' sector.

Those daily red flags are getting bigger by the day. The monthly charts still remain resilient even after two days of selling. Translation? No need to panic - YET! Gold, Silver and the mining sector seem to be responding too our short-term bullish inverse head and shoulders reversal pattern. Hang time... The bull is not dead, for now!

Now the Nasdaq is ONLY about 15 points (or, only 0.35%) away from breaking out on the weekly chart too. Will the Nasdaq breakout or will it stall at current levels since this is a tricky weekly RSI area for the tech index. With the VIX making fresh 52 week lows on the back of a multi-month move lower and after such a nice general market rally logic would have it that a pull back makes sense. The thing is, though, that markets are mostly illogical so the rally can also continue. I have added a new rebound idea in SWIR [$19.48] and there is a mention of EWZ [$47.82] (The Brazillian ETF) as a buy if it continues trading above $47.04 on it's monthly chart. Much love and do enjoy the weekend.

In this video we discuss the mining sector - which could have bottomed IF the GLD can hold above $120.00 We also take a look at the Dow Jones. Keep watching PLUG [$4.4099] should it move above $4.49 on it's daily chart. SPWR [$16.43] is a buy if it can continue to hold above $33.42 on the monthly. The recent Indian pick SSLT [$21.13] has done well for us (since the breakout below $13 in Mid May) and it could be time to take profits?

I apologize for the delay in sending you the usual weekend video analysis. Nothing much has changed on the charts, though, as we STILL continue to grind higher. I trust that everyone is having a great extended weekend.

Specific stocks picks start at the 57th Minute Mark where this week I discuss: EDC, AMZN, TSLA, LNKD, FB, BAC, TWTR, and PLUG.

What a confusing market... Yet, the bulls refuse to fumble the ball. SWHC [$15.23] is a buy as long at it holds above $14.99 and GST [$6.74] is a future buy should it breakout above $6.73 (a recent weekly closing high). Despite the obvious serious pull backs and especially if the general market continues holding above key breakout levels then eventually FB [$57.17] and AMZN [$298.15] should see higher prices (again as long as the general market continues pressing higher).

It seems that daily charts are indicating a pullback of some sort would make sense.

The market is in a tricky spot and there are so many reasons to be concerned about the failed breakout this week yet nothing has broken that severely as far as the major averages are concerned. So early in the new week we look to get a bounce or bearish break based on hourly and 30 minute charts. Weekly and monthly charts remain solid as of now...

The market continues to cling to strength despite a slightly down week... That is not to say that some charts have not turned sour. As long as the monthly charts are holding up well (above 69.10 on their RSI) then we continue being in a bullish phase. I have added a new stock pick in the way of PQ [6.69] as it jumps above $6.20 on its weekly chart.

PRMW [$4.40] has a $4.49 monthly buy point, BPZ [$3.33] has a monthly buy point of 3.18 Monthly, CHK [$30.40] has a monthly breakout of $28.75 while CRK [$28.51] is breaking out above $27.67 on it's monthly chart. With KNDI [$14.30] a recent pick already moving then we might also start keeping a close eye on PLUG [$4.30] especially if it can jump above the recent daily closing high of $4.49 on the daily chart.

So far the market is defending key levels and that is giving more weight to the bullish case. Gold / Silver / Metals are tricky set ups and could whipsaw investors for now - otherwise Silver looks tantalizingly close to breaking down? My pick for a weekend ZU got crashed today :(

Weekly and daily charts look okay but hourly charts seem tired.

The good news irrespective of how you are positioned is that we will know almost immediately if this bounce has legs or not.

The hourly charts could be setting up for a pullback within the broader strong bull market phase. There is nothing to cause panic, yet. Metals look set for a shallow pull back also... World markets similarly look poised for a cooling off period. Interestingly we see many of the world markets near huge round numbers. PBR [$15.76] is also discussed at the tail end of the video. PBR is not a buy until, AND ONLY UNTIL, it clears $15.94 on it's daily chart.

About two months ago when markets were flatting with record highs there was a feeling of euphoria as speculation had become rampant. Now we see record highs (at least as far as the Dow is concerned) and many of the speculation names have been seriously punished. Does it mean that now the market has legs? Will the Nasdaq catch up with the Dow or will the Dow follow the NASDAQ lower?

There is some indication that short-term (hour to hour) selling is done for now???

We discuss the general market and also take a look at FMCC/FNMA, SWHC, SPWR and KNDI. FMCC [$4.66] and FNMA [$4.76] are breakout buys above $4.62 and $4.80 respectively. SWHC [$16.43] continues to record higher highs once it clipped above our buy point of $15.88. SPWR [$16.43] is a buy if it can continue to hold above $33.42 on the monthly. KNDI [$12.19] is a buy right here at around $12.30 as a rebound candidate.

We focus on the Nasdaq and a small note that TRTC [$0.6752] could have a big move this month. It could also imply that, by extension, the cannabis sector could also be poised for a sizable move this month.

Hour to hour there could a recovery here... PLUG [$4.50] remains a buy as long as it successfully holds above a buy point of $4.49.

In this video I do my best to discourage the thought that the market cannot go higher. Yes, it could be a major top BUT what if it is not??? I can't help but think of the period between 1995 and Early 2000 when the SPX moved from under 480 to 1,500 and the NASDAQ rallied from ~750 to ~5,100. These type of moves ONLY take place when all major averages are trading above $69.10 on their monthly RSI - which is exactly what is happening RIGHT NOW! SPECULATIVE financial stocks FMCC [$4.56] and FNMA [$4.60] need to clear $4.62 and 4.80 respectively on their monthly charts if they are to see the $7 - $8 dollar area short-term. Energy sector stock NTI [$29.20] has a weekly chart buy point at $28.24 and mining/commodity stock SWC [$15.82] has a weekly buy point at $16.04. SSLT [$12.99] is also in the commodity/mining sector and it has a monthly buy point of $13.16. Where applicable wait for the stocks to actually move above the predetermined trigger buy point price levels before taking up any position to ensure that there is true momentum in each specific situation.

The market finally closed at all time weekly closing highs on the Dow Jones Industrials, SPX, and the Dow Transports. They need to hold above those levels for the rally to continue. I added two new buy ideas. MGN [$1.33] is a breakout candidate above $1.36 on it's monthly chart. ZU [$47.35] is a rebound candidate with a stop around the $45 area. Should the market fail to hold the key weekly breakout levels then I still believe GWPH [$71.47] and HLF [$59.95] are great short candidates. Otherwise do not short IF the general market remains above the breakout levels since a runaway market tends to carry most stocks higher over time. I did not cover world markets in this video.