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| Thursday, January 19, 2006 |
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Afternoon Update - SPX, XAU, & NGS
The S&P 500 Large Cap Index (SPX) - Hourly chart
The SPX has completed it's wave (3) to (4) pullback. Wave (4) has been put in and the SPX has broken out of the short term down trend channel. It still looks like the SPX has another leg up to put in wave (5). Confirmation of the next leg up is 1288. The Aroon just had a bullish cross, and the stochastics on the hourly chart are reversing up, as is the PPO. Stick with the bullish trend. I recommend that you continue to stick with chart patterns that can go up regardless of market conditions.
The Gold and Silver Index - Philadelphia (XAU) - Daily Chart
Gold stocks remain in bullish waters. The daily chart of the XAU illustrates that it is forming a nice sideways bull flag. It looks like a buy here. The indicators and oscillators are bullish, and the PPO continues to make new highs along with price. I would load up on charts like GLG.
Natural Gas Services Group (NGS)
Yesterday I sent out the alert on NGS, which is also when the stock scan picked it up. I wanted to go long NGS yesterday, but the SPX did not cooperate. Therefore, I issued a buy alert on it today after the Oil numbers came out. Entry was triggered at $18.44. However, breakout did not occur until $19.23
On the daily chart, NGS has broken out of the falling wedge reversal. It is in a falling wedge continuation triangle. Indicators and oscillators are bullish. I have added it to the portfolio table. I do not recommend trading options on it.
$SPX
$XAU
NGS
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