| Technical Analysis Commodity Related Index |
|
| Tuesday, February 13, 2007 |
|
Nightly Update - The Commodity Related Index and its Components Review
I have been discussing and emphasizing the strength of the commodity index for months and weeks now. As you know, per the previous updates, the $CRX it is in a strong trending bull market. All of the components of the $CRX are as well. If you look at the $CRX charts below you can see the progression of the $CRX's bullish move. The $CRX double bottomed in October of 2006 and then broke out of a bullish descending triangle in November to end its wave 3 to wave 4 correction. This marked the beginning of the $CRX's current bullish 5th wave move upwards. As you can see right now, the $CRX has broken out of a bull flag on the daily, and it is approaching it's 52 week highs and the top of the ascending triangle on the weekly chart. It could very well take out the ascending triangle tomorrow. The catalyst behind the bull flag breakout on the daily is due to the fact that many of the components of the $CRX are taking out long term resistance on their charts. In addition, Alcoa came out with good earnings, and this has given a boost to the aluminum stocks which are performing well. Look at the charts of the aluminum companies CENX and AL, they are breaking out of ascending triangles. International Paper is taking out long term resistance on its Monthly chart, and its chart looks bullish. Most of our portfolio stocks are components or peers of the $CRX. We have good entries on our commodity related stocks so we timed our entries well. When the juice man gets to these stocks they are definitely not boring. This week I issued new buy alerts on GIGM, ISRG, LYO,STLD, and SJR. I am still waiting to buy NOOF. The technology index has the potential to make things not so fresh if it breaks down. However, the QQQQ's are not moving, and remain rectangle bound. This keeps the bias for the QQQQ's bullish, but I still remain cautious regarding the QQQQ's.
Editorial Assistant for Trending123.com
daisy@trending123.com
daisy@trending123.com
Morgan Stanley Commodity Related Index-- The Morgan Stanley Commodity Related Equity Index (CRX) is an equal dollar weighted index based on shares of widely held companies involved in commodity-related industries such as energy (e.g. oil and gas production and oilfield services and equipment), non-ferrous metals, precious metals, agriculture and forest products. The CRX Index was established with a benchmark value of 200.00 on March 15, 1996. To ensure that each component stock continues to represent approximately equal weight in the index, adjustments are made quarterly, based on closing prices on the third Friday in March, June, September & December.
$CRX DAILY--MORE THAN JUST AN INDUTRIAL METAL RALLY, HOWEVER METALS HAVE BEEN HOT
CURRENT CHART
$CRX JANUARY
$CRX NOVEMBER
IP--I THINK THIS IS MORE SHOCK AND AWE THAN "AA"
IP--FROM THE WEEKEND UPDATE
|
