Saturday, September 22, 2007

Stockcharts.com Weekly review

Big week with the Fed cut. What had the Stockcharters to say about the market action for the week?

Joe Reed is still on gulf watch:



Interesting to see a potential stochastic top in the Dow - note the crossover:


His energy sector charts make for interesting viewing - note breakout in oil prices:


With the Dollar/Euro breakouts:


Ted Burge has a good ATR point-n-figure chart for the Qs, showing a breakout as of September 19th with a price target of $52.90



Jack Chan shows how successful the Gold Bug index has been since the August lows:


Robert New's 10-year Yield chart looks more bullish (for higher yields) than it did last week, and that's after the week's rate cut...


Richard Lehman had his usual good commentary:

9/22 -- The big picture is still bullish all the way around, though clearly closer to the top now than the bottom. The latest short term channels still have room to go higher. The minichannels show that for all intents and purposes, the move up from the September 10th low is still in play and that the rate-oriented spike just widened and extended it. Gold and oil are still heading up and at the top of their range.

9/20 -- The action since the rate spike is typical of a huge vertical move now being absorbed into the market through a minor drift back. If the new slopes on the ST minichannels are correct, even a slight decline tomorrow morning will touch the lower lines and set up for another bounce upward. The would be the move to go with until the minichannels break.

9/19 -- Buying momentum has resulted in the minichannels accelerating upward now. The spike causes them to be less reliable until more data emerges, so attention should now focus on the larger ST channels and the minichannels on the longer term charts. Therse are showing some room on the upside, but not a whole lot.

9/18 -- I had to redraw the current minichannels but when I did there were so many magic line touches, it amazed me. Almost every index hit and closed right on the upper line of a minichanel started days ago. It wasn't an easy one to see coming, but there it is now. We should back off of that closing high now, though the momentum could carry things higher along the upper minichannel lines before dropping. The larger upchannels are steep and have more room on the upside here if the curent minichannels want to extend.

Maurice Walker also gave his 2 cents:
9/21 The 15 & 60 minute charts get it right again! We now have mixed signals with positive divergence on the 15 minute charts & negative divergence on the 60 minute charts. So we may rise to tag the upper boundary of the 60 minute channels, before backtesting the H & S patterns. I expect a backtest, whether we rise first or not. Support is at 1490/SP 500, 13,440/Dow, and 2630/Naz.

Sam Kinison was a popular comedian, whose star was rising in the 1980's. Kinison would say or do anything for a laugh, and he often offended various groups with his over-the-top comedy. His Anti-Women, -Gay, and -Christian comments were often criticized, as they were often the targets for his controversial comedy. His bit, the gay version of the Terminator, from his album 'Live From Hell,' got him in hot water with gay rights groups. Ironically, prior to his new found success, Kinison was a Preacher (Minister) of the Christian faith. Kinison eventually turned to a life of drugs, developing an appetite for cocaine & hard-drinking. Kinison earned a reputation as a philander with the ladies, as he reveled the life style of sex, drugs and rock n' roll.

On April 10, 1992, Kinison was on his way to a performance in Laughlin, Nevada from L.A. Tragically, a pick-up truck approached his vehicle & hit it head on. The two boys in the pick up truck had been heavy drinking. Kinison wasn't wearing a seat belt & his head smashed into the windshield, unfortunately killing him. Witnesses stated that some of Kinison's last words were 'I don't want to die, I'm not ready.'

As controversial as Kinison was, I still believe he was gifted with the ability to make others laugh, but he failed to use his gift productively. Kinison stated 'I'm not ready,' before he died. A trader must always be prepared & ready for unexpected events. Author Paul Auster said 'If you're not ready for everything, you're not ready for anything.' Be ready for another buying opportunity as we backtest our inverse H & S patterns.

His Elliot Wave count for the Dow suggests a major wave 5 is in its early stages. It would fit for his suggestion of an election year rally:


His S&P charts show the two key support levels; the neckline and the black resistance line (now support):



Bulls will be looking for more of the same next week.




 
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