KNOL

Been following this stock for a while. Will it break resistance this time?

knol072606, originally uploaded by elmer_tang.

Nasdaq Surge

Haven't had the chance to update recently but here's a chart analysis for COMPQ.

compq072606, originally uploaded by elmer_tang.

Midday

Market responds positively to earnings and Bernanke's speech for the congress. I read the speech and it sounds like he is leaving the door open on pausing. He acknowledges the recent rate hikes might still be in the pipeline and its full effects may not have surfaced and they need to becareful not to go too far. He is concerned about the CPI and the rise in oil prices. He doesn't sound too optimistic about oil prices falling back to previous levels and staying there.

Nasdaq right now has past its resistance at ~2074, lets see if it can stay there.

Earnings

Yahoo met expectations and IBM beat expectations after the bell today. I expect the Nasdaq to react positively to this. We've been waiting for some good news for a while and this might be good enough to get people buying again. With another huge list of companies reporting tomorrow, there won't be any big rallies. Oil also isn't as overbought anymore so it might bounce back from the two down days.

Intel, eBay, Qualcomm are a few big names that will be reporting tomorrow.

compq071806, originally uploaded by elmer_tang.

Oil on the rise

The violence in the Middle East has only intensified over the weekend. The G-8 has one voice saying that the violence must stop but has not done much except criticizing the parties involved. Not much action...not much result.

Overseas oil prices now trading at $77.68, slightly higher than friday's close.

Have a good weekend

Nothing new to write about. Market continues its way down. What the international community does about the crisis in the middle east may detemine what happens Monday.

Enjoy the video(not related to the market for once) and the weekend.

G8 Summit

Its clear that the leaders at the G8 summit all want an end to the violence in the Middle East. There's a good chance that Israel will be pressured into a cease fire. Lebanon had already commited itself to a cease fire less 24 hours ago.

This might be a turning point for the stock market as oil will ease back.

More importantly though is that a full out war may be prevented and no more innocent lives are lost.

Another sell-off

The Nasdaq dropped below technical support at ~2070 and just kept dropping. I had to pull up the one year chart to find the next support level, that pretty much sums it up.

So the reason for the drop seems to be middle east tensions which may affect oil supplies. High oil prices add to inflation which leads to rate hike concerns again. So I'm wondering how is it possible that the market can go up in the longer term if high oil prices have such a negative impact on the market. For what reasons would oil prices actually decline and stall at a comfortable level? I can't seem to think of one.

The market should technically bounce according to the CCI and Stoichastics. The volatility indicator isn't quite high enough to justify panic selling.

In the short-term the markets may bounce but hows it possible for the market to break its downtrend when oil prices aren't going to lower significantly anytime soon?

Sounding bearish and MAD. LOL =)

Lone Star

KNOL is the lone star on my list of watched stocks. Broke out of the ascending triangle pattern a week ago but has been strong for the last three days.

Starting with the hammer candlestick on monday and following up with two strong gains on higher volume compared to the two down days prior to this series.

Stock is not overbought yet but no longer oversold.

knol120706, originally uploaded by elmer_tang.

Ouch
Big drop today on the Nasdaq after a slight rally yesterday. Giving back every gain and more today, it continues to look bearish. Only hope is that support holds up near 2074 and that indicators showing near oversold conditions encourage buying.

Name change
I feel that 'Trading' is more valid than 'Investing' for this blog because of the short time frames and the pure technical analysis I do on the stocks.

It really doesn't matter but it just bugged me. =)

Nasdaq really looks THAT bad?
As much as I'd like to prove everyone else who's been saying this wrong, I can't. The good news is the chart could look even worse. Lets hope it doesn't break that trendline tomorrow.

Oil
Prices should pullback somewhat next week due to overbought conditions. If the pullback occurs, it would be a good opportunity to pick up some oil stocks. The summer has just started and I believe these oil prices will continue to rise after this pullback. The key resistance right now is at $75.

Earning season begins this Monday with Alcoa reporting. Most analysts believe that these sets of earnings will continue to be strong and drive the market up. If earnings reports are good and oil pulls back slightly, the coming weeks may be positive for bulls. BUT with 3M's recent warning results may not be as upbeat as analysts want them to be and maybe commodity prices are starting to hit profits.

IMCO
Opportunity to buy off the trendline?

Record price breaks

AD	35.95	11.69	4,987,100		Record Price Break Out
DLP	32.23	2.94	227,700		Record Price Break Out

(source: clearstation)

SIMC
Heres a stock which I started tracking after it was recommended on Knight Trader blog. Fundementally speaking this stock isn't something I normally would invest in since it has such a high P/E. But, the chart does look really strong. Today with the Nasdaq down 1.69%, it still was able to put up a 5% gain.

KNOL Chart
Looks good but insider sale near 52-week high.