Sunday, November 19, 2006

Stockcharts.com: Weekly review

It was a good week for the Stockcharters. The extra leg of the rally was best illustrated by Mitchell Meana and he was right on the money. He has stuck to his target of $44.80 for the Qs, or 2,498 for the Nasdaq - assuming wave 5 is equal to wave 1.



Joe Reed has an interesting chart for crude oil; he shows oil trading at a 5-year support line (using a log scale). I am no fan of his self-congratulatory style, but as he would say, "He nailed this one!". A good spot.



He is also showing Healthcare bullish percents at resistance, on a reversal in stochastics, relative strength, and the Ultimate Oscillator.



Ted Burge starts out with a good market summary:

Nov 17th! The PnF Supply and Demand Report is indicating again today the very first signs of some weakness in demand. No hype and no predictons, just watch the pace of stocks moving to buy and sell signals and from X's to O's. A 3 box reversal on a traditional PnF chart is normal price activity. It is all explained in my reports on my site.

The model 'Brain Dead' Portfolio on my site has averaged 400 dollars a day. (UNTIL THURSDAY! HINT!) If nothing else it has shown that PnF traditional buy and sell signals work, and that the 'brain Dead' part is staying on the right side of supply and demand and letting price do all the work. Support and resistance makes all the decisions for you and instead of watching indicators jumping around all over the place, the only thing we must watch is price. (you know, the thing we trade).

New buy and sell signals are published every night and cover the LAST 5 DAY PERIOD. Very interesting to say the least.

The emphasis on indicators and what they are doing can easily overshadow the more important issue of what price is doing and where there is demand and where there is supply.

There are reports of support and resistance for the SPDR's, Holder's, the QQQQ, RUT some ETF's as well as the Gold Indices and the components of the SOX.

Where there is support or resistance (objectivly defined) on what ever you are trading, there is support or resistance and this is the only thing we can know in advance. Price will either respect it or reject it and you will know where it is, because I will show you how to find it.

As long as demand is in control there is no factual basis for a bearish stance.

Be aware of the facts especially after today and you will have a jump on the competition. (The competition is anyone else making money on your losing trades.

His free website is tic-tac-dough.com.

On his public list he has a good chart showing multiple support levels for the iShares MSCI Pacific Ex-Japan Index fund (EPP).



In addition to a good chart on the S&P 100 index. He had this to say:

Nov 17th! 2 and a half months later and dozens of wave counts, alternates and lousy predictions. A 3 box reversal is normal price activity and in this case could be 635. The 20MA is at 643 today and should be considered as well.

Anything more than a 3 box reversal to 635 could (could) be a sign of a signifcant increase in down side risk.




Finally, his Nasdaq chart has the next resistance level at 3,042 (seems a but lofty to me - but we'll see).



Richard Crockett has some good stock set ups. But like the majority (including myself, who have been wrong about the rally for too too long), is tiring of the rally...



Robert New keeps it simple. His new website is an additional source for readers. His chart of the Nasdaq holds to a cup-and-handle pattern. The projected target from such a consolidation is around 2,725. The first page of his list includes similar information from the other indices.




Henri Straetmans has conducted some Elliot Wave analysis on the Nasdaq. His shows a rising channel with an upside target at around 2,500 (similar to Mitchell's); bookmark this chart.



Richard Lehman is showing some excellent short term channels. One for the Dow:



Nasdaq:



S&P:



and Russell 2000:



Jack Chan has turned negative on the Oil Servies:



along with the Energy Select Sector (XLE):



His gold Bugs Index ($HUI) doesn't escape the cull either:



Nor did the Gold and Silver Index ($XAU):



Keep your eyes peeled. Now that resistance has broken across the board it is easy to become complacent. Stock watchers should check out Stephen Stewart's list for ideas.

Finally, there is a newcomer making a charge on the list: Maurice Walker. He had this to say about the Nasdaq:



As always, I appreciate Votes for my own list if you follow it.


 
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