Tuesday, May 20, 2008

Are Oil Stocks Ever Going to Stop Going Higher?

After going through my scans, I noticed that I had only 152 stocks down more than 4% on higher volume today. That is not a very high number and indicates that there wasn't very heavy selling today. Typically, numbers over 300 will show heavy selling and that would get me more worried. So perhaps today is just part of a needed pullback and the market still will head higher after this little rest. I would still recommend paying attention to those support levels I mentioned earlier and going from there - if we head below those, there is probably a good chance this pullback could be more severe.

I really don't have any charts that I am interested in my scans. I didn't see too many that were severely damaged today, but none are setting up either that I am excited about. RICK is shown below - this is what I entered at the end of the day. I am considering adding to my DGLY position here as long as it continues to hold support. Besides that, I won't be doing much of anything except managing current positions.

RICKDGLY
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Not much on the short side in the scans either. China looks like it might be breaking down again but it did this two weeks ago and that didn't amount to much. There were a few breakdowns but shorting here might be chasing a bit.

FXI, CHA
CRM, LNN
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Here are some of the oil charts that I have been talking about for the past few days. I may be totally wrong in my interpretation here, but these either are already or starting to become parabolic, and I still think a major pullback is due anytime. It may not happen for a few more days as they stocks gets stretched even more. Bottom line is that I am staying away from these stocks for the forseeable future. Best of luck Wednesday.

MXC, PDO, FPP, ROYL ECA, CVX, OXY, PBR
EGY, BEXP, MMR, HUSA
CNQ, WLL, SU, EAC
PXP, WTI, SM, HES
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Tags: , , , , , , , , , , , , , , , , , , , , , ,

2 comments:

BUY ON THE DIP said...

love that RICK!

hey, where's our link exchange?

Mac said...

Sorry about that - I did put it when I talked to you about it but I guess I didn't save changes or something. It's there now. My bad.