Friday, May 30th:
Did Oil Peak At $135
- Yesterday could have been a sign of a peak in oil prices, at least
for a small window of time. In the past, any and I mean any time so
called bad news on oil came out – inventories dropped, rebels causing
problems, pipeline disruption or oil traders were just in a bad mood
meant prices were going higher. The US weekly data showed fuel
inventories fell sharply and yet oil fell. They also reported demand
for gasoline fell, which would indicate prices should fall. However,
the recent trend had shown any good news was trumped by bad oil news
and prices would go higher. It appears that oil shorts might have the
trump card now. We will find out quickly if this was an anomaly or a
change in direction for black gold.
Thursday, May 29th:
Another Good Day
- Wall Street enjoyed another good day as all 3 major indexes ended
higher yesterday, which was great news since oil was back at it again
finishing over $131 a barrel. The first quarter GDP is due out shortly
so that should move stocks later today.
Here are some stocks that have shown interesting changes in options volume to the upside over the last week:
GVHR,
SWS,
TRX,
EEE,
NLS and
OGE.
Wednesday, May 28th:
We Will Take It
- It was nice to have an up day after a long weekend. Oil came down a
little and is the reason the market ended in positive territory
yesterday. I found a few stocks that I wanted to share that could be
setting up in a nice charting pattern. The first two are a cup with
handle pattern and are RIMM (which is easier to spot when looking at a weekly chart) and LMNX (look at daily chart here). The other stock of interest is CXP, which is displaying a head and shoulders bottom and you will want to look at the weekly chart here.
Tuesday, May 27th:
Long Weekend to Forget Last Week
- After last week’s action, it is nice to have a long weekend to forget
the past. I would look for at least a little bit of a rebound this week
although I still think we will be in a trading range for a couple more
months. If you are a trader, this is great news as long as you have a
good idea of when to be buying and selling. I will post some stocks
that appear to be in charting patterns for Wednesday.
Friday May 23rd: Quick Hits
Oil Behaves For A Day
- Well oil took a breather yesterday but it is still over $130 a
barrel. There are several theories out there on why the price has
rapidly increased in such a short amount of time but which theory is
the right one? That could be debated for weeks and you still would not
have a clear answer. We just have to suck it up and hold on for the
ride.
The trading volume should be lower than
normal today with traders heading for the exits early for Memorial Day
weekend, so no matter what happens today I would not draw any
conclusion based off today’s action. The volume at the beach however
should be much higher than normal and I plan to add to that volume.
Have a nice long weekend!
Thursday May 22nd: Quick Hits
FnO Sinks Market
- Another day, another excuse to sell stocks yesterday as the DOW
plunges over 200 points. The problem was the FED minutes were released
and oil is continuing its upward march. The FED minutes suggested they
are done lowering interest rates even if the economy continues to
contract. This really should not be that surprising to anyone. I guess
seeing it on paper made all the difference or at least gave people an
excuse to sell. They are worried about inflation and the dollar, but
again the writing was on the wall here. The other problem was the price
of oil just continues to march forward or up in this case. It closed
above $133 a barrel and that my friend is PAIN!