Thursday, August 13, 2009

Another Quick Update From the Beach...

Well, time goes fast when you're on vacation and we're down to our last two days here. It's been fun however. I continue to keep an eye on the market and when it rained like yesterday afternoon, it makes it a little easier to do so. I was stopped out of my CHDX position early yesterday at $15.02 for a small loss - it never really acted well after breaking above resistance around $15.60. It could bounce soon and still turn out OK, since volume was lighter the past two days, but I figured it wouldn't be worth hanging around. I did start a position in CHK yesterday afternoon at $23.82 and will look to add more if it breaks to new highs for the year. I have a feeling commodities could run here - we'll just have to see. As always, I could be completely wrong and if so, I have my stop set.

As for the overall market, we are still chopping around in a range here but the potential is there based on individual charts for a breakout and move higher. I don't know if that will happen - I hope so, but we could also get a bull trap going and reverse back into this range with August being typically a slow and volatile month. I do see a good amount of bullish consolidation patterns in quite a few stocks and if these act properly - remember, I saw the same thing back in early June and when they started breaking down, it was a warning sign for the June pullback. These patterns are what I will be focusing on for clues to the next move overall. I am also seeing some bullish setups (cup with handles, inverse H&S) in the commodity areas and if they move higher, the market will likely follow.

Right now, I am long three stocks and am willing to add more from my watchlist if we breakout and am not looking to short anytime soon. I think it is about 50/50 chance we move higher from here or keep the chop going, which is why I am not heavily long yet. It looks like we may have a good opening today - let's see if the bulls can build on it and not give it back like they did at the end of the session yesterday. Best of luck out there.

1 comment:

1option said...

Enjoy the rest of your vacation Mac. It seems to be a common trend among us bloggers this month!