While the media is painting a rosy picture, the indices are struggling a bit here with resistance. There have been a three negative candles confirming resistance at the upper bollinger band so a pullback may be in the works. Commodities have been rallying as suspected and they could be the catalyst for a deeper correction in the major indices. Here are a few charts that look interesting.
JOYG had a weak day today, but is close to breaking this down trendline and clearing this base.
OMNI looks like it may pull back to the band, but is in a bullish posture.
Keep an eye on XING here as it pulls back to the rising trendline. It looks like there will be a big move here one way or the other.
WRLD looks like it is rolling over here. Although it is already at the lower band, it could accelerate here.
Good Luck,
DT
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DT,
Great analysis - as usual. I know you have been watching BDCO especially recently... looking for an energy breakout. Looks like it happened today, possibly the beginning. I was holding another energy play (MPET) and they both broke out at the same time a few hours into the session.
I have been watching BDCO as well recently and just picked up some on a retrace of the intraday high at 4.25.
Did you trade this one today? What are your thoughts on its recent movement knowing that this one can break out and run very high in little time...?
Also, as far as the sector analysis goes, I have improved on my approach... thanks to your suggestions and a little homework on my part. Its extremely helpful to be aware of the movement of the different sectors and see which ones run inversely to the other(s). Using this and the general market direction, one can play a sector at the opportune time and raise the probability of success significantly. One great example is the recent breakout in the Gold sector which I was able to capitalize on with strong plays on SA, IAG, BMD, and USGL.
Thanks again for the great blog,
Muaad
Muaad,
Great work on your recent trades. It pays to be in the right sector, because even if the general indices are down, you can still get a move if you are in the right sector.
As far as BDCO, yes I am in. I have been picking some up recently under 4, and it looks like they are on their way. I didn't post the chart last night because I already own it, but it is looking good I think. It looks like it will trade lower this morning, but we'll see how it goes as the day progresses.
j.bardt,
Not sure what your trying to tell me. You're right, the Nasdaq was higher much of the day, but the fact that it gave it all back is bearish. Not saying this is the end of the world, but you want strong finishes, not strong openings.
Good Luck,
DT
DT
I just wanted to complement you on the great job you are doing with this blog. Best of luck in the future.
Dan