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OIL $OOG UPL
Wednesday, April 18, 2007


Weekend Update - WTIC, OOG, & UPL

Oil -Light Crude-Continuous Contract (EOD) (WTIC) - Daily Chart
The daily chart of WTIC shows that Oil has completed it's counter trend wave 3 to 4 pullback. Oil has broken out of the down channel and is now in a move up to wave 5. Oil looks to make another move up to test it's previous highs around $70.85 and make a possible double top. As oil begins to stall at former resistance ($70.85), energy stocks may take a dip or reverse. Recently oil and energy stocks have front run the rise in OIL. As strange as it sounds, "parabolic oil is not as bullish for oil stocks as one might think." This will kill the momentum in energy stocks. Traders will begin to shift out of energy stocks and into the highly leveraged oil futures contracts and might even short the energy stocks as a hedge. Oil making new highs is a sell. Make sure to "book the massive gains in all the oil and energy plays," if that is too occur.
Indicators and oscillators remain bullish yet toppy. The following portfolio stocks have been making new highs: SU, UPL, OXY, VLO, BRY and CNQ. Stay in these stocks until I give the sell alert, which may be quite soon.

ISE Oil and Gas Services Index (OOG)- Daily chart
The daily chart of the OOG shows that it has broken out of an ascending triangle. To me that is significant, it seems the OOG is just starting to cook. Could this move in the OOG be a catalyst to roll the market over. Don't forget the EPX is also making new highs. Again, the indicators and oscillators are bullish and are making new highs along with price. Keep with the energy stocks as I reiterated.

Ultra Petroleum Corp. (UPL)- Daily Chart
The daily chart of UPL illustrates that it has broken out of an ascending triangle. Out of all of our energy plays, UPL has scared me the most. So far we are up 20.71% on this stock since our entry at $55.00 at the end of November. Again, the indicators and oscillators are bullish and are making new highs along with price.




OIL
Crude Oil
$OOG
$OOG index chart
UPL
UPL stock chart