KNOL

Following this stock for a while and it finally broke resistance with good volume yesterday.

knol080206, originally uploaded by elmer_tang.

OMNI

Been on an uptrend and looking to test recent highs.

omni080206, originally uploaded by elmer_tang.

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 =)