GDX - net yearly gains

With gold and silver climbing into year end, the miners followed. The ETF of GDX settled the day +0.2% at $23.24, making for a net weekly gain of 1.5%. For December, GDX saw a net gain of 4.3%, making for a significant net yearly gain of 12.0%.


GDX weekly

GDX monthly

Summary

With the precious metals rising into year end, the miners followed, with a third consecutive net weekly gain. The settling December candle is rather bullish in style, and does offer a push into the $25s within 1-3mths.There was very notable option activity today in GDX, with >59000 of the Feb'16th $25s trading.

Pete Najarian of investitute.com highlighting unusual activity

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Copper and oil are both indirectly suggestive that gold/silver will eventually battle upward in 2018. If correct, the miners will no doubt follow to some extent.

For bullish clarity, the mining bulls should be seeking Gold >$1400, Silver >$22s, with Copper >$3.00. The latter was achieved in August.

The more cautious will leave GDX alone until the Feb high of $25.71 is taken out. Any price action >$26.00 would then offer a fast run to challenge the summer 2016 high of $31.70.
--


For the record, my favourite gold miner remains...

Barrick Gold (ABX), monthly

Barrick ended the year on a very bullish note, with a Dec' gain of 5.0% to $14.47. Its notable that the Dec' candle is of the bullish engulfing type, and does lean to at least short term upside to the 15/16s. The cautious will wait for a break above trend, which in January will be considerably higher, around $17.30.

It could be argued price structure since summer 2016 to late 2017 is one giant bull flag. Will need to see >17.30 to provisionally confirm that, and >$23.24 to fully confirm it. If the latter was seen, natural target would be the 37/40 zone.

GDX - climbing with the metals

With Gold and Silver climbing, the related miners followed. The ETF of GDX ended the week on a positive note, +1.1% at $22.89, which made for a second consecutive net weekly gain of  4.9%. Near term outlook is leaning upward into year end.


GDX weekly

GDX monthly

Summary

Last week saw a key bounce from what is core support in the low $21s. The mining bulls should be very relieved to have seen bullish follow through.

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M/t outlook is mixed. For bullish clarity, we arguably need to see Gold >$1400, Silver $22s, and Copper $3.00. The latter was attained in August, and copper is one powerful indirect signal that gold/silver, and the related miners will eventually follow upward in 2018.

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My most favoured miner remains Barrick Gold (ABX), which managed a daily close above the 50dma, having just recently broken the downward trend from early September.

ABX, daily

 The more cautious will wait to chase until >17.50.

GDX - battling to hold support

The gold mining ETF of GDX settled the week on a moderately negative note, -0.4% at $21.99, but that still resulted in a net weekly gain of 1.4%. Near term outlook offers chop into year end. Things only turn provisionally bullish with a break >23.00, to be decisive, the mining bulls need to exceed the Feb' high of $25.71.


GDX weekly

GDX daily

Summary

Suffice to add, a sig' net weekly gain for the miners - naturally helped via upside in gold and silver, but more broadly, the picture isn't so pretty. The miners have been cooling since September, and other than the very sig' 'fed day' gain, price action continues to lean on the weaker side.

The cautious will leave the sector well alone until at least a provisional bullish break, which is arguably GDX >$23.00. 

Alarm bells if Gold <$1200, or if GDX sees any daily closes <$21.00.

Best guess? Based on my broader bullish commodity outlook, I'm still leaning bullish.

TEVA - jumping on restructuring news

Whilst the main market saw a day of moderate swings, there was notable strength in Teva Pharmaceuticals (TEVA), which saw an intra high of $18.98, and settling +10.2% at $17.30. The stock is still within a m/t bearish trend, but that looks set to be decisively concluded in early 2018.


TEVA daily

TEVA monthly

Summary

Suffice to add, huge layoffs of around 14k, a suspended dividend, and the stock soared in pre-market by around 18%. For those working for Teva, it was a very bad day, but for the stockholders, its was a good day, and it marks the beginning of what is an overdue major restructuring.

Technically, the m/t bearish trend looks set to be broken in early 2018. I would keep in mind the key monthly 10MA, currently in the $23s, but that will be down to $20 by March/April.

I am m/t bullish TEVA. First soft target is a monthly close above the monthly 10MA, which is indeed a target that will be easier to hit with each month. Any monthly close above the 10MA will offer secondary of the 32/33s.

BAC - post hike cooling

The fed raised rates as expected, with Bank of America (BAC) seeing some classic 'sell the news' cooling, settling -1.6% at $28.84. S/t bearish... if only for a day or two. M/t bullish, as the psy' $30 threshold is due before year end. Many now recognise the $33s are coming, as higher rates are bullish financials.


BAC daily

BAC monthly

Summary

Suffice to add... higher rates are bullish financials, and to a lesser degree, the broader equity market and US ecomomy.

BAC remains my most favoured of the US financials.

FCX - a fifth day higher

Freeport McMoRan settled higher for a fifth consecutive day, +4.6% at $15.71.The push above $15.00 is significant, and offers the low $16s within the near term. Any monthly close >17.00, will offer the 24/25s by late summer 2018.


FCX daily

FCX monthly

Summary

Relative to the past two months of price action in copper, FCX is actually performing rather well indeed...

With a daily close of $15.71, the low $16s are easily viable within the very near term. There will likely be some considerable chop/consolidation in the low $16s.

What really matters - as seen on the monthly chart, is whether FCX can attain a decisive monthly close in the 17s. If that is achieved, its open air to the 24/25s, last seen in Dec'2014. Clearly, it will need copper to stabilise around the $3.00 threshold, and resume broadly upward.

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FCX garners most of the 'copper miner' attention. However, Southern Copper (SCCO) is technically, and arguably also fundamentally, a superior company. A second alternative is Teck Resources, although that has a coal segment, which is a commodity that many want absolutely nothing to do with.

GILD - mid term strong

Whilst the main market settled moderately mixed, there was notable strength in Gilead Sciences (GILD), which settled +2.2% at $75.88. The Nov' low of $70.05 marks a key higher low. M/t outlook is bullish to >90.


GILD daily

GILD monthly

Summary

Suffice to add, the recent Nov' low of $70.05, marks a key higher low. Price structure on the monthly chart is a bull flag spanning Sept-Nov'. A break into the 77s would arguably provisionally confirm it, the 86s would be decisive.

First target is the $90 threshold, back to levels from April 2016. Bullish GILD into/across 2018.  

GDX - a second week lower

The gold mining ETF of GDX settled the week on a moderately positive note, +0.5% at $21.68, but that still resulted in a third consecutive (if minor) net weekly decline of -3.6%. Near term outlook offers a test of big support around the $21.00 threshold.


GDX weekly

GDX daily

Summary

A second sig' net weekly decline for the miners, clearly pressured by a third consecutive net weekly decline for gold and silver.

The critical issue is whether Gold can hold the key $1200 threshold. If that is lost, it would be bode monstrously mid-term bearish for the related mining stocks.

Best guess? Silver has been broken since the summer, and the last two weeks have been rough for Gold. I'm increasingly leaning on the bearish side, not least as copper is also back under the key $3.00 threshold.

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The bolder mining bulls could be long from around current levels, but to be clear, if GDX loses the $21s, and/or Gold <$1200, it would merit 'run for the exits'.

The cautious metal/mining bears would wait to chase lower on a break of GDX <21, and/or Gold <$1200.

MU - a third day higher

Whilst the main market saw moderate gains, there was very significant strength in Micron Technology (MU) which settled higher for a third day, +3.9% at $43.20. The Monday low of $39.07 is now an increasingly secure floor. First soft target is the psy' level of $50. M/t bullish to $100.


MU daily

MU monthly

Summary

Suffice to add, with an FPE in the 6s (or even 5s, depending on how you calculate it), the stock remains ludicrously priced on the low side. It is no stretch to see $100 by late 2018.

Next earnings are due Tuesday, Dec'19th in AH. I expect good numbers, and the $50 threshold is viable before the Christmas break.

BABA - mid term super strong

Alibaba (BABA) saw the first gain in 7 trading days, settling +2.2% at $172.63. Near term outlook offers a little chop. More broadly, new historic highs (>191.75) are due in early 2018. M/t bullish to 225/50 by mid 2018.


BABA daily

BABA monthly

Summary

Little to add.

BABA has proven sig' profits, and looks fine for the mid term. November settled weak, and we're currently net lower for a second month.

A valid, if somewhat more speculative alternative is JD. 

MU - short term floor

Whilst the main market saw a day of moderate swings, there was very significant strength in Micron Technology (MU) which settled +3.3% at $41.21. Today's net daily gain offers provisional confirmation that the Monday low of $39.04 is a s/t floor, with the stock having cooled from $49.89.


MU daily

MU monthly

Summary

Six days down... and finally a net daily gain for Micron. There has been notable buying around the psy' $40 threshold across the past 3 trading days. Effectively, the stock has declined by around 20% since the Nov'22nd high.

A floor does appear in. The cautious will now be buying, with a stop around the $39.04 low.

With a FPE in the 6s, Micron remains my most favoured stock in the entire market. Next earnings: Dec'19th in AH.

DIS - a clear breakout

Whilst the main market saw a day of broad upside, there was notable strength in Disney (DIS), which settled +4.7% at $110.22.The stock has achieved a clear breakout, with next soft target of the 115/118 zone. A move >120 looks probable by early spring 2018. Talk of the 140/50s by end 2018 can begin.


DIS daily

DIS monthly

Summary

Little to add from recent posts.

Technically, breakouts don't come any clearer. Today can be counted as Day'1 UP, and the Disney bulls can expect an extended bullish phase, as in months... rather than mere weeks.

Note the MACD (green bar histogram) cycle on the bigger monthly chart. At the current rate, we'll see a bullish cross in Jan' or Feb. Next earnings will be due early Feb'. If Mr Market is pleased, its possible we'll push >120 even before early spring.
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Meanwhile, the buildup to Avengers: Infinity War (due April/May 2018) has already begun. The fans are naturally already hyper...



... bullish.

GE - starting the month bearish

General Electric (GE) began the final month of 2017 on a bearish note, settling -2.2% at $17.88. November saw the stock settle net lower for a ninth consecutive month, and on balance, December will surely settle net lower. The Oct' close <$22, offers no major support until the $13s.


GE daily

GE monthly

Summary

Suffice to add... the horror show continues.

November was always about whether Flannery could inspire, and he failed, with Mr Market smashing the stock from $20.75 to $18.29. The Nov' low of $17.46 looks set to be taken out before year end, as there will no doubt be some degree of tax-loss selling.

yours.. bearish to the $13s.

BAC - bullish with higher rates

Bank of America (BAC) - the shining star of the US financials, ended the month on a fractionally positive note, settling +1cent to $28.17. This made for a third consecutive net monthly gain of 3.3%. M/t outlook is bullish, with soft target of the $33s, and secondary of the 40/45 zone within 12/18 months. Higher rates are bullish for BAC, the financial sector, and the broader US equity market.


BAC monthly

BAC daily

Summary

It was a bullish end to the month, and there is zero reason to expect the m/t trend not to continue until at least the $33s, if not $40/45. The latter will clearly require US rates at least 2.50%, if not >3.00%.

For the record, I do NOT expect rates to fully 'normalise' to around 5%. There are simple 'math problems', as higher rates will eventually cause problems in terms of debt repayments, at consumer, corporate, and governmental level. However, until rates are at least 2.50%, I don't see any significant reason to be concerned.

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Many in the mainstream recognise that higher rates are bullish for BAC and the broader financial sector...

Pete Najarian of investitute.com, regularly highlighting BAC, JPM, XLF

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yours.. bullish BAC, the financials, and the main market, into/across 2018.

DIS - powered by the Infinity Gauntlet

Whilst the main market saw a very mixed day, there was notable strength in Disney (DIS), which settled +1.8% at $105.24. A sustained bullish break >106s is due, and that will open up first soft target of the 115/118 zone. The 140/50 zone is a valid target if the US/world economy continues to grow across 2018.


DIS daily

DIS monthly

Summary

Recent earnings were 'fine', and price action since late October has been rather bullish indeed.

Note the MACD (green bar histogram) on the giant monthly chart. At the current rate, we'll see a bullish cross/positive cycle in January or Feb'. First soft target are the previous two highs of 115/118. A move to 120/25 seems very viable by mid 2018, not least if Dow 25/26k.
--

Disney owns the two biggest movie/TV franchises in the world - Lucasfilm and Marvel.

Today, Marvel released the first trailer for Avengers - Infinity War, a movie that many fans have been waiting for since 2008.




yours... bullish Thanos. Even if loses, he'll take down some of the Avengers with him.

BAC - soaring on rate hike outlooks

It was a very bullish day for the financials, with Bank of America (BAC) settling +3.9% at $27.64. Many are now looking ahead to 2018, as most recognise rates are set to further increase, which is inherently bullish for all financials. M/t bullish, soft target $33s, and then 40/45.


BAC daily

BAC monthly

Summary

Across 2017 I noted the importance of the key $18 threshold, and how an upside break would have monstrously bullish implications for the mid term. We saw the breakout in Nov'2017, and that can be marked as month'1 UP.

Some 12 months later, BAC has seen the $27s. Next big target are the $33s... last seen in Dec'2008.

Higher rates are unquestionably bullish, and it looks safe to assume another 3-4 hikes next year. As things are, BAC is set for a third consecutive net monthly gain, and the $33 really do appear a given.

MU - just some cooling

Micron Technology (MU) began the week on a rather negative note (intra low 47.09), settling -3.3% at $48.05. There is natural psy' level resistance around the $50.00 threshold, with last week seeing a high of $49.89. Near term offers further weakness, but m/t... still hyper bullish to $100.


MU daily

MU monthly

Summary

I'd imagine at least a few will start to tout 'the bubble has burst', but with an FPE in the 7s, Micron remains very under-valued relative to the main market.

The fact the stock has already hit the $49s, gives confidence to the original outlook. The break into the $37s in September was massively important, and the door to the giant psy' level of $100 is wide open, viable even before end 2018.

I can understand if some prefer more well known techs like INTC, CSCO, or even AAPL. To me though, MU is my favourite tech stock, and indeed, my favourite stock in the entire US market.

yours... bullish Micron, into and across 2018.

GDX - a third week higher

With gold and silver ending the week on a slightly weak note, the related miners followed. The ETF of GDX settled -0.3% at $22.85, but that still resulted in a third consecutive (if minor) net weekly gain of 0.3%. Near term outlook offers weak chop. Things would get interesting if GDX >$23.10.


GDX daily

GDX weekly

Summary

Nothing to add from recent weeks.

MRO - higher with oil

With WTIC in the $58s, Marathon Oil (MRO) caught renewed interest, settling +2.5% at $14.88. Recent price action is just a retrace of the initial big wave from the key Aug' low. M/t bullish, soft target $19s. Any monthly close >19 will offer the 29/30s in 2018.


MRO daily

MRO monthly

Summary

Little to add, aside that there has been recent notable call activity in MRO.

yours.. bullish MRO, bullish energy

MU - powering upward

Micron Technology (MU) continued to push upward (intra high $49.63), settling +3.7% at $49.40. The key psy' level of $50 is clearly viable within the immediate term. The m/t hyper bullish target remains $100, which is ironically rather conservative.


MU daily

MU monthly

Summary

Suffice to add, yet another day higher for Micron, as the psy' level of $50.00 is set to be hit. With an FPE in the 7s, the notion of $100 by late 2018 is very much viable.
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There has been sustained option call buying in MU for some considerable time, today was no exception...

Pete Najarian of investitute.com highlighting notable call activity.

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yours... bullish to $100. 

JD - short term chop

JD.com (JD) settled -2.6% at $39.20. Recent earnings were fine, and the stock is arguably just seeing short-term chop. Things would only turn bearish if the Oct' low of $35.79 is broken under, and that is still a considerable way down.


JD daily

JD monthly

Summary

Suffice to add, recent earnings were indeed fine. Its notable the stock saw a black-fail candle at resistance Nov'13th.

Soft bullish target are the 49/50s, which are clearly out of range before year end, but look a given within spring 2018. The more cautious will stick to Alibaba (BABA), which has proven sig' profits.

GDX - ending the week positive

It was mostly a week of chop for the gold miners, but the week did end on a positive note. The ETF of GDX settled the day +0.8% at $22.79, which made for a second consecutive net weekly gain of 1.2%. Near term outlook is bullish, and would be greatly helped if the USD remains under the DXY 95s.


GDX daily

GDX weekly

Summary

Suffice to add, with gold and silver battling upward, the related gold miners are following.

It is notable that GDX continues to lag, relative to gold. Its been a year of broad chop, with the mining ETF stuck under the Feb' high of $25.71.

Mining bulls should be seeking a break above the weekly 10MA, currently at $23.15. Things only get interesting once the Feb' high is broken and held above. Any price action in the $26s will offer a fast run to the 2016 high of $31.70.
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* the one indirect bullish for gold, silver, and the related miners is copper, which is set for the third monthly close of the past four, above the key $3.00 threshold.