GDX NEX 7GOLD GFI GDX GLD 

This is Scott with your Chart of the Day. I want to take a look at GDX ( NYSEARCA: GDX ) and a gold miner that I think is definitely worth watching.

If you look at GDX ( NYSEARCA: GDX ) here. I have a bunch of lines here, you can tell I have been watching gold for a while. It is finally doing something as it is trending nicely above all of the major moving averages. It is above all of the major moving averages and you can see it is a tad extended above the 8-day.

Now, in this market, we’ve noticed that it has been really hard to buy breakouts. Anytime we get a big breakout in anything some sellers come in and push it right down. And so I am keen to really pay attention to stocks close to their major moving averages.

In the Gold Sector, it is hard to find those because if you look at some of the leaders like NEM ( NYSE: NEM ) it is working fine. But look how high it is above that 21-day exponential period moving average, that’s the gray line. It is even slightly above the 8-day here. So any buy here, in my opinion, is hard to do with any size because you are kind of chasing.

Let’s look at GOLD ( NYSE: GOLD ), it’s okay but it is just kind of going sideways, some quiet inside days; and so these are alright.

But I found GFI ( NYSE: GFI ) today, Gold Fields, and it’s really nice and close to the 8-day and the 21-day. You can see I have drawn this downward sloping trendline, so we have a clear level of resistance, some clear support, longer-term here, shorter-term here. And so I think that this could potentially be actionable if we can get a break out of this clear consolidation zone.

I think it makes sense to have an alert on this, maybe around 15.80 and we will want to see a strong move coming out of this cluster of moving averages, coming on higher than average volume. And so, that is what I think you should be watching for here on GFI ( NYSE: GFI ) if the gold miners and GLD ( NYSEARCA: GLD ) can continue to kind of chug out of this recent consolidation zone.

CUBE NSA 

This is Scott with your Chart of the Day. I actually have two charts for you, they are kind of boring old, sleepy old, REITs. The market is blah lately, let’s be honest, but there are still some areas that are in nice uptrends, and the REIT section is one of them. In market uncertainty, people are looking for some sort of yield. These aren’t, as we call them at Stock Market Mentor, yield hogs, but they do offer a little bit of a dividend.

We will start things off here with CubeSmart ( NYSE: CUBE ). CubeSmart ( NYSE: CUBE ) is above all the major moving averages. We have a little bit of a low handle here, I would say a proper handle would probably be up here in the 56.00 area. But with the market weakness, I’m not surprised that this isn’t near the highs, a lot of things are down off of their highs. We do have a nice short base here, kind of around the 53.00-54.00 zone.

What I would look for on CubeSmart ( NYSE: CUBE ) is either a break above that level right there, about 54.30. Or, potentially, a little pullback bounce by around the 8-day exponential period moving average. This level has acted as support over the last 2-weeks or so. And so if it doesn’t act as support, well then it is doing something different, you will probably want to exit the trade. That is what I would look for, potentially a little pullback, buy bounce, and then you would add on a break higher above 56.30.

The other REIT that I want to show you is NSA ( NYSE: NSA ). Now, it’s not that NSA, it is not the NSA that listened in on your last phone call, it’s National Storage Affiliates Trust ( NYSE: NSA ). The chart pattern pretty much looks the same. All the major moving averages, all above, and they are in order, 8, 21, 50, 200. So right there it makes the cut for my stock selection.

What I want to see from here is kind of the same setup. Either a potential low-risk entry buy near the 8-day or the 21-day and then it has to close above that level. Or a breakout higher and kind of a move on volume above 64.70. I have an alert here at 64.66, just below so if it gets close to that 64.70 level I will be alerted for it, I can flip it up on my screen here and take a look at it. That is what I think we should be watching in this market as the market kind of figures out what it wants to do.