Joined Nov 11, 2007
1,458 Blog Posts

Stocks Making New 52 Week Highs

I ran all my scans tonight but did not find any charts I felt were worth publishing.

Therefore, I will just post my 52 week high list from today. Obviously these stocks have mojo, to be making new highs during the recent death tape.

52 Week Highs: 12/13/07

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The Daily Breakdown: CP

Canadian Pacific Railway

Canadian Pacific Railway is about to experience a dive of its 50 day moving average beneath its 200 day moving average. This “Death Cross” is a bearish development. CP has also failed at this junction of its two major moving averages.

The stock has been undergoing some roll-over for 4.5 months, and this will likely accelerate as the bulls read the writing on the wall and begin to capitulate.

 However, in checking the news on this stock, I found CP released tonight some updated guidance. Here is a link to the news: CP Updates Guidance. The stock traded up 2.5% after hours. This may be a gift to the bears as a strong open will put the price right at resistance. Any weakness tomorrow should be sold as it will indicate that investors have discounted this guidance.

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The Day the Emu Cried

Enjoy these death throes, bulls. Until resistance is broken, you’re all still running around with your heads blown off.

Woodshedder, December 5th, 2007

Put This In Your Bull Pipe And Smoke It

How many of you banked coin at the Honey Hole? Don’t worry, there will be more opportunities.

The indexes have now clearly established a downtrend line and are using the 50 day and 200 day moving averages as support/resistance lines. If you want to continue banking coin through this correction, you need to learn how to use these simple tools.

Bank This, Bitch

The Philly Banking Index looks like someone has made one to many trips to the money hole. That it will re-test its lows seems obvious. Note the glaring failure at the 50 day moving average.

You’ve Ben Bernakeed

The Nasdaq Composite is my favorite, sporting a huge reversal from the 50 day resistance.

What can we learn from these charts?

  • The bankers are no where near done declining
  • The indexes just made a lower high
  • Overhead supply is building
  • There are gaps to be filled below today’s prices
  • Volume again rose on the downside move
  • Stochastics giving clear sell-signals across the board

What is there to be bullish about? The RSI(2) will likely go near oversold tomorrow if the indexes gap down and trend downward throughout the day. This will setup for another oversold rally, which will likely see the indexes test resistance at either the blue downtrend line or a major moving average. Should this occur, you will find yourselves at the Honey Hole. Fill your greasy bear paws with the sweet goo.

Other than a very quick oversold rally, I see nothing, technically speaking, to be bullish about. Enjoy the second leg down, and banish from your thoughts any fantasies you were having about V bottoms.

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The Volatility Indexes: Nearing Long-term Trendlines


In the current market climate it is hard to imagine that the Volatility indexes are headed back towards intermediate-term lows. Should the market perceive the Fed’s action to be bullish, the indexes will likely again touch down on their 200 day moving averages. A swift move down to this area will place the indexes in extremely oversold conditions.

All three indicators are already oversold, or nearly so.

A break through the 200 day moving average would mean that this Santa Rally may sprout even bigger legs and have some long-term sustainability.

Keep in mind the possibility that there may be another volatility spike which would keep these indexes following a similar pattern of up / down within the recent range.

Hopefully today will provide some clarity.


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Reader Request: EMC

EMC for Employee8

In a recent comments section, Employee8 asked about EMC. I’ve been keeping an eye on the chart, so I thought it would be a good time to get a look.

Surprisingly, EMC has been largely left behind by the large-cap technology rally. The stock has floundered beneath resistance at $20.00, but did bounce strongly from the 200 day moving average.

Overhead, the stock has the 38.2% Fibonacci retracement at $20.50 and the 50 day moving average at $21.00.

The very tight price action created during the last several days portends an imminent move. Should the Fed announcement launch a bullish surge in tech equities, I expect buyers to push the stock above immediate resistance at $20.00

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The Daily Breakout: NFG

NFG Breakout

National Fuel Gas Company operates as a diversified energy company in five segments: Utility, Pipeline and Storage, Exploration and Production, Energy Marketing, and Timber.

NFG completed a six-month consolidation before breaking out in October. After retesting the breakout and bouncing around the 50 day average, the stock made a run for new highs and surged higher on 4x the average volume.

Although the RSI(2) shows the stock overbought, notice that it stayed overbought for the better part of September and October.

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