The U.S. is looking to sell a 700 Billion Dollar Secondary Offering. As with any secondary, the deal is dilutive. It should not be suprising then to see Oil rallying, since it is priced in dollars.
Still, I see lots of resistance just above today’s close in Oil. The technicals have me betting on a pullback. RSI(2) is overbought, but note that there have periods in April and May when USO stayed overbought for many days. There is also the 38.2% Fib, the declining 50 Day Average, and the 200 Day Average acting as overhead pressure.
Be careful, though. Should [[USO]] blast through the overhead resistance, there should be no doubt at all about which side of the trade to be on.
As for the rest of today’s action, volume was minimal. I do not put a lot of weight on today’s action due to the low volume. My post from last night is still fresh and the wisdom contained within still stands.
We all wish it was $7 billion dollar fix!!
Shed, c’mon, you know as well as I do that the wisdom was never fresh, nor did it ever “stand.”
lol Mdawsz…thanks!
I don’t get a thanks?
Nope.
Wood,
After having eaten a delicious, crisp garden salad tonight, I happen to believe that your wisdom and words are still fresh.
Keep up the good work.
Thanks Alpha!
Damn you
balls on call bro.
Thanks B.
When is that damn covestor widget going to publish my short sells of FSLR (yesterday) and JRCC (today)?
Shed what do you think about AAPL here for a long trade?
http://stockcharts.com/h-sc/ui?s=AAPL&p=D&b=5&g=0&id=p03458336933
Any thoughts?
http://finviz.com/quote.ashx?t=aapl
Here’s another AAPL chart for your consideration.
Boomer, personally, I think just about everything will rally huge when/if the bailout is finished. I think it will be beneficial to have a mix of long candidates: those with recent 52 week highs, and good quality stocks like AAPL that have been beaten down.
I think AAPL is a laggard and will be a laggard basically forever, like MSFT and CSCO after the tech bust.
I would not own it for more than a trade, and I would not buy it here.
Thank you sir.
Shed – how’s gas supplies by you? We’ve had outages here all week. I could have sworn Jimmy Carter filled my car up yesterday. No gas to be found, although it is getting better.
Boomer, plenty of gas here. I paid 3.57 for it this evening.