Bullish Engulfing Pattern

“A chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses or “engulfs” the previous day’s candlestick. The shadows or tails of the small candlestick are short, which enables the body of the large candlestick to cover the entire candlestick from the previous day.

As implied in its name, this trend suggests that the bulls have taken control of a security’s  price movement from the bears. This type of pattern usually accompanies a declining trend in a security, suggesting that a low or end to a security’s decline has occurred. However, as usual in candlestick analysis, the trader must take the preceding and following days’ prices into account before making any decisions regarding the security.”

–Investopedia

Now that you are familiar with this pattern take a look at the NASDAQ Technical Picture

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I highlighted this stock last week, but it failed to breakout. Taking another look at it today, the stock is right back at resistance and looks better than before.

Headquartered in Baton Rouge, the company rents earth moving equipment all along the gulf coast. After Katrina, the company put up huge numbers quarter after quarter with shares hitting an all time @ $42/share.

Given the extent of damage located in southern Louisana, I’d say the company is well on it’s way to another record quarter.

The stock has been killed all year until recently where it is now trading above the 200 & 50 MA. A break above 15.25 with decent volume should give the stock what it needs to get back to $20.

Keep it on your radar.

Full disclosure: I own shares in HEES & my brother works for the company.

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Today felt good as I watched some big losses turn around. Earlier in the week I bought a nice chunk of GOOG and watched it turn positive today, I bought more around the 410 mark averaging my basis to around 417.

I recovered some ground in Apple Inc. [[AAPL]] as it took off into the close, but still down on the position.

I bought some National-Oilwell Varco, Inc. [[NOV]] early in the day, but nothing in size. I also took home some Freeport-McMoRan Copper & Gold Inc. [[FCX]] off of Fly’s buy today. I even got into Clean Energy Fuels Corp. [[CLNE]] on this mornings dip– I am tired of watching the stock run without me so I dropped some in the IRA.

As for my man size Valero Energy Corporation [[VLO]] position, I was stopped out the other day for a gigantic loss, sucks, but I still own a little Tesoro Corporation [[TSO]] .

Today was a recovery day in more ways than one. On this very day several years ago many good Americans lost their lives. My heart goes out to everyone who has lost someone special in their life. I too have experienced that pain.

A good man told me last night,

“God has a design for all of us, as inhumane as it may seem. Let his death strengthen your life, in his honor.”

Those words will never be forgotten.

Play the following clip as loud a your PC will allow. “We Will Never Forget”

[youtube:http://www.youtube.com/watch?v=VX9cM-Ovm3s 450 300]

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Last week I posted the chart below. In the post I noted to watch 11,300 as a support level. Well, you know the story, support was not held and we fell lower.

We are now approching that same level only this time it will act as resistance. Can we bust through and hold that level?

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Taking a look at the DOW it appears we are making higher lows. However, should we dip below 11,037, kiss it goodbye.

Google Inc. [[GOOG]] has always been a pretty good indicator of the overall market. Right now the stock seems to be bouncing from the $410 level. Watch that level.

Oil seems to be bouncing perfectly from it’s 50% retracement level. Watch for a bounce here, and look to get short below that level.

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As my readers know, I lost my best man in my upcoming wedding two Fridays ago. I am thankful for the support from everyone here, but there will be no more sympathy comments. Instead, I want to celebrate his life.

I am at peace now, as he was buried last night. The funeral was one of the hardest things I have ever had to deal with. Giving the eulogy was not an easy task, however it helped me say goodbye.

This man has helped me become the man I am today, and for that I am thankful.

He was always prepared for everything, and would always tell me “Be Ready.”

Well, the past two weeks I was not ready. Not ready to lose a friend, not ready to evacuate from a hurricane, and not ready to get punched in the nuts by mother market.

With everything going on I should have put the market on hold. But, I did not. I used it, “The Market”, as a sense of normalcy. However in that, I failed to properly prepare for what was coming.

In the last two weeks I took blows to my accounts, taking a “space alien magician summer” full of bountiful gains, to being almost flat for the year.

How did this happen? Bets. Very large bets.

I bet on oil spiking due to hurricane Gustav, that was a blow. I bet on the Government, ha, another dumb bet. All my life I was that guy who would make the crazy bet.

The last place I saw my friend before he passed was at a casino, go figure. We went to some club called Masquerades located in the center of Harrah’s, supposedly this is place to go in New Orleans. I remember him saying to me, as he watched me lose hundred after hundred betting on black, “this ain’t you”.

We left shortly thereafter with my finace puking in his car. Yeah, it was one of those nights. On the ride back to the hotel we had one of our famous talks, you know the ones you only talk about with your closet friends.

He told me gambling is for suckers, “the type of people we are” will never win. He said the only way to riches is through hard work.

Well, the past two weeks I gambled enough for a lifetime, and my account shows. It’s almost as if I was numb just taking hit after hit trying to hold back the pain I hid from losing my best man.

My friend was wise behind his years, and I only hope I take some of his wisdom and advance in my career.

Some of his last famous words were, “God doesn’t play dice.”

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