| Technical Analysis $SPX OIH SU OXY ZOLL Portfolio Stocks |
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| Thursday, December 14, 2006 |
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Nightly Update - $SPX, OIH, SU, OXY & ZOLL
Tonight's update is not going to be a video update. Right now I am working on making the live video updates better. There is a lot of trial and error right now in the production of the video, so I thank you for your patience. I also welcome your feedback on the video. Please post any suggestions on the message board.
Micro-cap stocks - I am going to create a video tutorial for you on how I find and search for micro-cap stock picks. Today's pick was FORG, which I actually kept as a secret. I kept it a secret only because I spent 10 hours trying to get the streaming video setup properly.
The S&P 500 Large Cap Index ($SPX) - Daily chart
The $SPX made new 52 week highs today at 14127.23. The $SPX closed the day up +0.87% at 1425.49 on good volume. As you can see the $SPX is still trading in the middle of it's up trending channel. We are in a glorious rally.
The stochastics are bull flagging. The rest of the oscillators and indicators are in a 1-2-3 bullish trend reversal.
Oil Services Holders ETF (OIH)- Weekly Chart
The weekly chart of the OIH illustrates that it is in the process of forming bullish ascending triangle pattern. As you can see by looking at the chart the OIH has successfully completed an ABC correction to the longer term uptrend line. This correction can also be called a wave 3 to wave 4 pullback. In November,
the OIH broke the intermediate down trend line to the upside. After the successful retest of the uptrend line, the OIH has rallied up smartly ever since. In addition, you can see that the moving averages are converging and beginning to form a beautiful bullish fan of all the moving averages. This sets the OIH up for a nice move. For the first time this week, the Aroon indicator has gone into a 1-2-3 bullish trend reversal on the weekly. Typically, when this bullish Aroon cross occurs, the OIH will pullback. Furthermore, it is options expiration week, which also causes the OIH to consolidate. This is actually a good thing. Finally, all the indicators and oscillators are in a 1-2-3 bullish trend reversal. Our oil stocks are now front running the price of OIL. The divergence between the price of OIL and the stocks is quite big. Therefore, either the price of OIL has to catch up to the advance in our oils stocks, or our stocks will consolidate. This is an FYI that I may now begin to send out alerts to take profits on some of our oil stocks. Wait for these alerts. We can then buy them back again later after the short term consolidation is over.
Sunocor Energy, Inc - SU - Weekly Chart
SU is also in an ascending triangle pattern on the weekly chart. It has completed it's wave 3 to 4 correction for this year, and it held it's uptrend line. SU has been under heavy accumulation since the end of September, and you can see the volume illustrating this on the chart. In addition, you can see that the moving averages are converging and beginning to form a bullish fan of all the moving averages. The Aroon remains in a bearish trend reversal on the weekly chart. Nevertheless, the other indicators and oscillators are beginning to reverse upwards, although they are still in a bearish trend reversal. SU is also a lower risk investor trade, meaning that it is meant to be held for 3 to 6 months or until price target is reached at $100.00. SU looks like it is just getting ready to break out. However, we may have to be prepared for a countertrend pullback for a week or so.
Occidental Petroleum Corp. (OXY) - Daily Chart
The daily chart of OXY illustrates that it has broken out of a symmetrical triangle pattern. It has been trading up ever since, on increasing volume, and is now getting ready to test resistance at $54.97. As you can see the, all the indicators and oscillators are in a bullish trend reversal.
Zoll Medical Corp. - (ZOLL) - Daily Chart
Zoll is in an ascending triangle pattern. However it is getting close to resistance in the mid $60's. I may issue a short term sell alert sometime soon. Wait for this alert.
PORTFOLIO TABLE--VOICE OVER WILL COVER MANY OF THESE STOCKS BECAUSE OF WHATS HAPPENING IN THE "OIH'
$SPX
OIH
SU
OXY
ZOLL
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