Energy and Gold show strength

Posted by downtowntrader | 8/01/2006 09:45:00 PM | 1 comments »

Markets had a fairly negative day that had me thinking the downtrend would accelerate, however, a strong close ate up a decent amount of the losses for the day. The Nasdaq was once again the weaker of the indices, and I wonder how many people are worried about the last bear market with techs and have been unloading ahead of time. Either way, things are still looking pretty bearish in the intermediate to long term with Oil and Gold resuming their uptrends which would force the Fed to keep raising rates at some point.

There are a lot of charts looking good for shorts.

But we'll start with a long ;). WNR held above the breakout area and had a decent day.
BTU is up against resistance and may be stalling here.
NTRI retraced a little of the recent losses but has barely made it to the earnings low. They may fail here.
GYMB is sitting on a major trendline support. Watch to see what it does here .
UARM may of broken a major trendline here and if it loses the 50sma it could get ugly.
BWNG looks like it is ready to resume the downtrend.

One of the clues to a stock being distributed is when good news fails to move it higher. CRDN released news of a contract a couple days ago and the stock popped and gave all the gains back fairly quickly. Now it moved further under the 200sma and may be breaking down.
KOMG retraced a bit higher and failed to reclaim previous support. If it
ATI ran into resistance at the descending trendline and sma's. Looks like it will head to previous pivot low.
I would look to the energy and metals sectors for short term strength. Oil stocks rallied into the close today and may be hot tomorrow with a possible hurricane on the way.

VLO is trading between support and resistance levels here. It looks like it wants to move higher.
TSO is trading a huge triangle. If it clears it, it could be a nice move.
OMNI has been a great performer, and looks like it is gaining steam agin.
AUY is an interesting gold play as it completed a reverse heaad and shoulders today. The target puts it at the 52 week high.

Good Luck,

DT

1 comments

  1. Jamie // 11:20 PM  

    Hey DT,

    I really like the AUY reverse H&S pattern. Looks very promising!

    Thanks,
    Jamie