Strong US Payrolls Hit Stocks and Gold...

In the perverted world of good news being bad news, US stocks (and by extension Canadian stocks) are having a bad day because of a strong monthly jobs report in the US economy. The markets have been rallying of late on the idea that the Federal Reserve will cut interest rates in July by as much as 50 basis points and perhaps again before the end of 2019. This is seen as providing more liquidity to the financial system and in turn is a support for the stock market. But the strong jobs report very much calls into question whether the Fed will actually go ahead with the rate cut, given the very tight labour market conditions and the sky high stock markets. Gold was also hit hard by this news and gold mining stocks got hammered this morning but have mostly recovered, even with gold still down $17. There are a lot of buyers at the moment and I consider this a sign of strength.


When I look at the gold miners on our watch list, I really don't see any major issues, as most of them are holding up quite well. A lot of our other stocks (BLDP, DOL, KNT, JWEL) are also pretty strong. I personally have several trades open and see no reason to sell them at this point. Let's take a quick look at a few charts.


The drop in AR is really minor considering the large drop in gold. There also isn't much volume, meaning that not many traders were scared out of their positions.


BTO looks basically the same as AR. If anything, a person could add to a position here.


EDV barely dropped when gold was down $30 this AM and has since recovered and gone positive on the day. Looks great to me. The stop could be raised as well.


USA has been super strong. I would consider raising the stop but it isn't necessary. Barring a collapse in the price of gold, this is headed higher.


I wanted to show CIA because it came close to getting stopped out today but has reversed back up a little. Sometimes if a stop gets hit, I watch to see if it reverses because a stop run can shake people out of their positions and then reverse higher again, leaving traders behind. But each trader needs to do what is individually comfortable because the stock can continue to move further down as well.


PTG has a bit of an extended bull flag pattern going on and these typically resolve upwards. The flag is getting a little long so I would like to see it resolve upwards fairly soon or it could break down. A break down out of the flag would be a sell, but if this occurred I would also watch for a reversal.


AMX is from a previous watch-list and is having a huge break out day. I wish the volume was a bit heavier but this is a great chart. It could be bought right here or on a little dip.


SLL wasn't on our watch-list but it definitely worth showing because it is in the process of breaking out. It could be bought right here.


HEO is also a new one and I am showing it because it is has broken its short down trend and looks ready to move up. As an aside, it is a water purification company, which I think will be big business moving forward. It is fairly thinly traded, so be aware that it may not be the easiest stock to move in and out of.


So in summary, things look really good by my eye. A person could have bought pretty much anything on the watch-list on Monday and would be up on their trade.


Have a great weekend!


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