| Technical Analysis $CRS GSS GOLD GG HHH USO |
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| Thursday, February 8, 2007 |
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Morgan Stanley Commodity Related Equity Index stocks ($CRX) - Daily Chart - Bull Flag Breakout Pattern
The daily chart illustrates that the $CRX has broken out of a short term bull flag pattern and is heading higher. " Bull flags are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume, and mark a mid-point of the move.... A flag is a small rectangle pattern that slopes against the previous trend. If the previous move was up, then the flag would slope down. If the move was down, then the flag would slope up. Because flags are usually too short in duration to actually have reaction highs and lows, the price action just needs to be contained within two parallel trend lines." (per Stockcharts.com) Furthermore, you can see that price is trading above the EMA's and the moving averages are trading in a bullish fan, and all the indicators and oscillators are in a 1-2-3 bullish trend, showing bullish divergence, and moving up along with price. The PPO and Stochastics are bull flagging along with price. The $CRX is headed higher. If you look at the components of the $CRX, you will see that 4 of our portfolio stocks are listed in the $CRX. They are ADM, APA,GG, and POT. In addition, our portfolio holds a lot of the CRX's peers. A few of them are: ANDE, AUY, GSS,SU, PEIX & UPL.
United States Oil fund - (USO) - Monthly Chart - Possible reaction low being placed- Not Optionable
USO is a stock that is similar to an ETF and it tracks the United States Oil Sector. USO is similar to an ETF. The monthly chart illustrates that it has completed an ABC pullback to the 8 year uptrend line. The multi-year uptrend line remains intact. I believe the reaction lows are being put in at this time for USO. Now, I want you to keep in mind that Oil, the commodity, and the energy stocks have diverged. The energy stocks are not following the price of the commodity, and they have not for a long time, which is why I prefer the stocks. When Oil starts out performing the stocks then we will have something to worry about, but until then, we be happy. As I mentioned earlier, I believe that a key reversal or turning point is in progress for USO. If you look at the previous reaction lows, you can see that they all occurred during a bearish Aroon trend. The bearish trend marks the lows. This is a lagging indicator on the monthly chart. In the case of reaction lows, when the trend marks the lows, it does not necessarily mean that the USO is going on to make new highs, but it does mean that it can have a 50% retracement up to $74.00 that will be enough juice to knock our stocks up to target. Furthermore, you can see that USO is putting in a reaction low on extremely heavy volume, and now volume is coming in to support the bounce of the lows. USO is 3% off of the lows so far.
Internet Holders ETF (HHH) Daily Chart - Ascending Triangle Breakout Pattern
The daily chart illustrates that the HHH is breaking out of an ascending triangle pattern. Granted, I am not a big fan of the QQQQ's and some technology lately, but as the pattern indicates, the sector is bullish and higher prices are bullish. Internet's look good.
$GOLD - Continuous Contract (End Of Day) INDEX - Weekly Chart
$Gold has been on fire ever since the breakout in this October/November, and it continues to move higher. Gold is back in an uptrend, and you can see that because it has taken out the wave 3 to wave 4 down trend line. In fact, $Gold has just taken out the last month's highs and placed a recent high at $667.20. However, please be aware that $Gold could be ready for a small pullback to form a bull flag. Nevertheless, the trend is starting to get bullish. There is already a disconnect between the Metal and the stocks. The Gold stocks are already outperforming the commodity, which is a bullish indicator for our stocks. Furthermore, you can see that the indicators and oscillators are in a 123 bullish trend reversal, and the PPO is showing bullish divergence.
Golden Star Resources Ltd. -(GSS) - Symmetrical Triangle breakout - Gold Sector- Daily Chart - Optionable
GSS is a medium risk Gold play. The daily chart of GSS illustrates that it has broken out of a bullish contracting symmetrical triangle. In addition, it has completed it's counter trend, wave 3 to wave 4 correction on the monthly chart. GSS is now trading above is its moving averages, which are also trading in a bullish fan. You can see that a bullish triple moving average cross occurred in the middle of January. You can also see that volume has been steadily increasing as the price moves up. Today GSS sliced right thorough resistance on triple the normal volume! This is very bullish action! It is within pennies from new 52 week highs. This is a sign of renewed leadership for GSS. The indicators and oscillators are in a 123 bullish trend reversal. This is the beginning of a 5th wave move up for GSS. The buy alert for GSS was triggered at $3.23. It is an investor trade, meaning that it is meant to be held for 6 to 12 months, or until price target is reached at $10.00.
Golden Star Resources Ltd. -(GSS) - Symmetrical Triangle - Gold - Weekly Chart - Optionable
I just want to point out that this GSS is up 14% this week alone and this illustrates the fact that GSS the stock is outperforming the commodity by leaps and bounds. The Aroon has just had a bullish cross, the volume is increasing and the rest of the indicators and oscillators are showing bullish divergence. What more do you want from a stock that will triple within the next 12 months.
Goldcorp, Inc. (GG) - Weekly Chart- Falling wedge with larger Ascending Triangle Pattern - Gold- Optionable
GG is a medium risk Gold play. This is my favorite gold play. GG is in a bullish ascending triangle pattern. Within this pattern is a smaller bullish falling wedge pattern. Within the falling wedge, you can also see a text book ABC pullback to the longer term uptrend line. Furthermore, you can see the bullish cross of the moving averages which will likely turn into a bullish fan in time. The Aroon indicator just had a 1-2-3 bullish cross, and the rest of the indicators and oscillators are bullish and moving up along with price. GG is an investor trade, meaning that it is meant to be held for 6+ months or until price target is reached at $44.00. I don't recommend over trading this stock. Please read Dr. Janice's The Man in the Green Bathrobe.
2/8/06: A Trader's Daily Affirmation: I enter and exit my trades at the right time for maxim profits.
Edited by Daisy
Editorial Assistant for Trending123.com
daisy@trending123.com
A Trader's Daily Affirmations
There is a simple law of attraction in life, this has to do with quantum physics. Without going on into great detail about that, you can assume then that you attract both the good and bad things into your life. This law of attraction is governed by our thought patterns. Your thoughts then attract what you think into you life. For example, if you have an unconscious / underlying belief system that you never make money in the stock market then you won't. If you learn to make your thoughts your best friends and control intrusive negative thoughts, then you will begin to attract infinite possibilities and good into your life. Since money and wealth comes to us as a form of is magnetic energy, and has a lot to do with our belief systems and thought patterns, I thought I would start adding a positive affirmation to the updates each day. So let us align our selves in the direction of positive thoughts for greater emotional, spiritual, and physical prosperity. Repeat this affirmation a few times a day. If you can say it out loud or write it down in your trading log/journal even better!
Today's affirmation: I make my trades easy and profits come to me effortlessly.
daisy@trending123.com
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$CRX--CLICK CHART FOR LAST UPDATE
USO
HHH
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GG WEEKLY
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