On Tuesday we discussed whether the numerous Federal Reserve board members who were speaking would drop any clues regarding their intention for July's interest rate decision. On Wednesday, Board Chair Jerome Powell gave an extremely dovish speech, all but assuring us that despite strong employment numbers, it was his intention to cut interest rates later this month. This sent markets higher for the remainder of the week, which culminated today with a massive rally in US markets.
Meanwhile the Bank of Canada announced mid week that it was leaving interest rates unchanged. Not surprisingly, the TSX did not enjoy the same end to the week, mostly drifting sideways to lower. Despite this, most of the gold stocks on the quick trade watch-list benefited from slightly higher gold prices to close the week. Other than that, Canadian markets were pretty soft, with marijuana stocks getting absolutely pounded to finish the week.
Let's take a look at the notable charts to close the week.
AMM broke out of its bull flag on Wednesday and pulled back a little but this still looks like a good set-up to me.
AR also had a big day on Wednesday. If gold cooperates, I could see this running for a while. The original stop will makes sense but if a person got in the $1.75 range, I would consider a breakeven stop.
EDV also broke out and formed a mini bull-flag to end the week. Depending on where it was purchased I would raise the stop to at least the 20 dma (red line) or perhaps to below the flag. Profit taking decisions really depend on a traders style. Some traders want to lock in gains quickly, while others are content to watch things play out. There really is no single correct way to play it but the good news is that this is a guaranteed profit.
GUY had a massive breakout on Thursday and followed it up with more today. The initial stop was in the $0.88 range but I would be comfortable raising it to under the breakout. Others may have taken profits already.
OLA has been pretty relentless for a couple of weeks now. The stop could be raised to the mini reversal area @ $1.14 but profit taking is also a decent option here.
NEPT had a mini breakout in the second half of the week. I believe this is a US cannabis oil company, so its performance is impressive when considering what happened in the marijuana sector this week.
NVO popped yesterday and then followed through today. This trade looks like it is just getting started, so it could still be bought.
ATP also had a good end to the week. It could still be bought on a pullback early next week.
TUD had a huge day with decent volume. The stop loss would be under the breakout area.
The final breakout chart is VMD, which launched on Thursday and held strong today. The stop is in the $8.90 area.
A couple of the watch-list stocks failed today and CLIQ was one of them. Note that it went below the trend line and did not reverse back up like previous times. It is still above the initial stop loss but to be honest it does not look good.
I wanted to show EFR because this chart illustrates why it is important to use stop losses. I am not sure exactly what happened here but this stock dropped throughout the day and had no recovery. Fortunately it did not crash right at the open, so traders would have been able to sell it early in the day at a small loss.
Have a great weekend!