You know, the Dow Jones Industrial Average didn't get above the much-discussed 20,000 mark today, but what didn't get a whole lot of attention on Tuesday is the fact that the S&P 500 as well as the NASDAQ Composite both crept into record-high territory. This is either really good, or really bad.
It's really good in the sense that a breakout move -- above a technical ceiling -- is usually a bullish trigger. It's bad in the sense that if the market's "play" here is to lure any stragglers off the sidelines and into the market only to lower the proverbial boom on them with a huge selloff, this is what it would look like.
We'll look at the matter in some detail below, but first we've got some news from one of our Featured Stocks.... Nexus Gold (CVE:NXS, NXXGF). We hope you got into this gold mining name when we unveiled it to you. See, this stock is up 105% since the end of 2016, and has rallied 125% since we first told you about it back on November 23rd.
Nexus Gold's claim to fame is its so-called Element Detection Technology, or EDT, which is a whole new method of looking underground from the surface for various metals. But, what's driven all the bullishness since November is some amazing (and amazingly rapid) progress with one of its three gold-mining prospects.
Bryan Murphy gave us the full scoop earlier this morning. In short, its Niangouela gold concession in Burkina Faso, Africa, is an even stronger prospect than first suspected. Per this morning's press release:
"Sample NG007, which was taken from material extracted from the eastern shaft and from a depth of approximately 60 meters, returned values of 403 grams per tonne gold. The sample consisted of several fragments of quartz vein material containing host rock inclusion, and containing steaks and blebs of coarse visible gold.
Sample NG008 was taken from the western shaft, 10 to 12 metres west of the eastern shaft. This sample consisted of a single large piece of primary quartz vein containing host rock inclusions and also showed a cluster of visible gold. NG008 returned values of 49.8 grams per tonne gold."
Now, for those of you who know the gold mining business, you'll know that's a strong presence of gold. What makes this news so compelling is that it's a follow-on to some similarly good news released a couple of weeks ago that detailed some of the findings of earlier samples at the site. Those were:
"The highlights of the program include sample NG005 taken from the primary quartz vein at 46 metres below surface which returned a value of 2,950 g/t gold. In addition, sample NG006 was collected from the artisanal dumps of the sheared intrusive which returned a value of 23.9 g/t gold. These results indicate the presence of high-grade gold occurring within the primary quartz vein and the sheared intrusive envelope."
Between that and the fact that gold prices have been rising at a brisk pace since late-December, it's no real surprise to see the stock perform like it has. Hope you took action when we first showed it to you.
As far as the market goes, we're finally at the inflection point. We had to be... there's no more room in the midst of the converging wedge pattern -- framed in orange -- for the S&P 500 to bounce around.
It looks like the bulls won the argument, by virtue of the slight push above the ceiling at 2281 today, and then just a little more. It didn't hold onto that high, but the bullish blow was dealt all the same.
Like we told you above, this could be really good, or really bad. It may well be the trigger for a huge wave of profit-taking by all the 'smart money' now that 'everyone else' is convinced it's time to jump in. Here's the curious part... not everybody jumped in today. Volume was fairly moderate. Nobody's taking the bait in earnest yet. Thing is, that's a setup for a wave of profit-taking anyway.
We suppose this could be the beginning of a legitimate breakout, but that's something we'll wait to make a call on until we have more facts. The whole thing doesn't pass the smell test for us.
To that end, should the bulls take off from here, we do think that will be a fairly short-lived surge that does set up the usual February weakness.
Timing is going to be everything here, which is why you'll want to keep a close eye on everything this week. That's also why you'll want to stay tuned to the newsletter.
Last but not least, we want to close out today's newsletter by doing something we've never quite done before. We want to show you a picture of what you're missing.
Most of you know the SmallCap Network also publishes two different premium newsletters... the Elite Opportunity Pro, and the Under the Radar Movers service. Those two newsletters are written completely independent of one another, and the one you're reading right now is also completely separate from the two premium publications. Incredibly enough though, both the EO Pro and the URM newsletters recommended the same stock pick this week. Under the Radar Movers suggested it on Monday, and for totally different reasons, the Elite Opportunity Pro team picked it today. Both newsletters were right in their rationale, with the one common element being the strength of the surge seen this week. Clearly something changed.
Just because I'm a naturally curious guy, I wanted to dig deeper into the fundamental story the EO Pro's John Monroe had to tell about this pick. To keep things quick and simple, we just plotted the past and projected revenue and earnings numbers for this pick. The turnaround is underway, even if 'just barely.' All big trends start out as small ones.
In this light, it's tough not to like the trading idea, and it's tough not to like the fact that the chart just suddenly woke up.
Why am I bothering telling you this when we're not going to tell you what the stock is? Well, ever heard the phrase "two heads are better than one"? I'm a firm believer that more perspective and more opinions are better, so when I see two brilliant guys both coming up with the same pick entirely on their own, I pay attention.
And let me be even more clear about this - the pick in question is one of those ideas that is compelling enough to get all of you fence-sitters off the fence and into one of our two premium services. The odds of success are very, very good with John and his team as well as James Brumley and his team on the same page as one another. This trade very well could pay for your subscription to the URM or EO Pro newsletter. It doesn't even matter which one you choose - you'll find the same stock pick in both newsletter's archives.
We just wanted you to see what you're missing, and let you know it's not too late to slide into what two veteran traders both feel could be an outstanding trade. Go here to learn more about, or sign up for, the Elite Opportunity Pro. Here's the signup page for the Under the Radar Movers service. Both pages have track records for each service.