Although the markets as a whole are not in great shape and mostly reflect a range there are some very nice looking chart setups currently. Back in March/April I posited on some charts noticed a slew of cup/handle patterns.
As a refresher, this is a chart pattern first identified by William O'Neill, great trader and publisher of IBD. Basically the formation is a bottoming and rise (forming a cup) and then a pause at the breakout (forming the handle). A series of higher lows and higher highs occur. This is a timeless pattern for a bullish construct that plays out over and over. Waiting for this great pattern to occur and then jumping on can be the springboard of huge profits.
CAUTION: there are stocks IN the formation and stocks that are trying to get there. In my work today I see some very good cup/handle setups:
DVN, CHK, CEO, IBM, XOM, CRM, ICE.
Tag >> DVN
As we all try and come to grips with the horrible disaster in the Gulf and the oil spill, this has become a life-changing event. Could any of us feel worse about the disaster? The loss of life, destroying the ecosystem, beaches bombarded by crude. Yet on Tuesday President Obama took us in another direction, and the market responded vigorously.
Needing some kind of catalyst to get it moving again, Obama mentioned natural gas...something he hasn't done in quite awhile...as an alternative, and would press to get this into an energy bill very soon. As you would expect these names responded - DVN, CHK, HK to name a few. On Wednesday some other Nat Gas drillers responded to the President's lifeline...the world of drilling is no the end all.
We'll see if there is more rhetoric to come, the oil companies are formidable opponents to other sources of energy. However, if it's the markets that need a jolt then we can see a dose of alternatives is all it takes.
Needing some kind of catalyst to get it moving again, Obama mentioned natural gas...something he hasn't done in quite awhile...as an alternative, and would press to get this into an energy bill very soon. As you would expect these names responded - DVN, CHK, HK to name a few. On Wednesday some other Nat Gas drillers responded to the President's lifeline...the world of drilling is no the end all.
We'll see if there is more rhetoric to come, the oil companies are formidable opponents to other sources of energy. However, if it's the markets that need a jolt then we can see a dose of alternatives is all it takes.