Posted by downtowntrader | 8/22/2006 09:21:00 PM | 0 comments »

Looks like I have a bunch of new visitors today, so I would like to offer my welcome. Thanks to Dr. Brett for the mention on his blog today. Also, thanks to Trader Jaime of Wall St. Warrior for the mention on his stocktickr interview. Check it out here, it is an interesting read, as are the other interviews.

For those visiting for the first time, this blog is mainly about sharing what is on my watchlist with the public. I started the blog as a way to share my charts with some trading buddies and groups I was a member in. I think it fills a niche in the blog community as most blogs are dedicated to reviewing daily trades or general trading advice. My main objective is simply to provide a watchlist of stocks likely to move BUT that also offer a decent short term entry for swing traders. If anyone likes what they see or has any suggestions / ideas please feel free to leave comments.

I'll start tonight by showing my CRB / US Dollar ratio chart. It is interesting to note that Gold and Oil seem to be bouncing short term, however, it appears that a top may be in place. Look closely at the chart below and notice that the CRB index failed to reach the upper band after a normal correction and looks like it may of formed a double top. Also, the major Ratio trendlines are close to breaking. At this stage in the economic cycle, it seems like the time is right for a peak.

Funny that I will follow that up with a bullish oil and gas refiner, but the charts are what they are short term. There are several refiners in tonights watchlist and we'll start with ALJ. It hasn't triggered yet and may drift to the ascending trendline, but I will be watching for a break of this little pennant type consolidation.
WNR is another refiner that looks like it has already started to bounce.
NITE is looking like it has cleared resistance and may get a nice move if it can clear the wick left yesterday.
MYOG has been consolidating the breakout move for three days and may be ready to follow through.
DBRN is looking pretty bearish after the head and shoulders top and then a failed consolidation. There is a sliver of support on the lower trendline, but the major trendlines are broken.
CTCM is for aggresive traders not shy about IPO's. Has a little pennant going and a morning star type reversal pattern.
CTSH is a very nice looking chart with a little whipsaw after the failed breakout. If it can clear this little consolidation, it would validate the breakout and offer a very nice target.
HOC is another refiner that looks bullish. Although these trendlines are a little unorthodox, it is clear that these are lines of importance and candles are confirming support right here.
Here is a possible head and shoulders top in the making. ODFL is in the transports sector which has been showing weakness with signs pointing to a weakening economy.

We've had some decent moves on stocks mentioned on this weeks watchlist such as ORB, NEU, ETP, ARD, EZPW, TXU, so make sure to keep an eye for follow through moves.
Good Luck,