October 2006 - Posts

• PT: Nightly Commentary (Oct 30, 2006)

  Tuesday, October 31, 2006 3:52 PM

  Crude Oil took a beating today. If it can bounce back right away, the commodity should do fine (to the upside). However, if it breaks significant support levels just below current price, there could be a deluge ahead. We have a number of stock picks, which have been doing quite well over the past few weeks, from this sector and would look to book profits and move away from the sector if any such breakdown were to occur. Read More Posted by Purely Technical 0 Comments Go to top

• PT: Weekly Newsletter (October 29, 2006)

  Monday, October 30, 2006 5:20 PM

  Over the past couple of weeks, we have been rather bullish (the charts dictated us to do so) on the Metals and Oil & Gas sectors. We’ve had quite a few good plays come out of these sectors over that period. Also in this write-up look for a Market Round-Up of action over the past week... Read More Posted by Purely Technical 1 Comments Go to top

• Overbought, So What?

  Friday, October 27, 2006 6:12 PM

  A number of "technicians" out there have recently been mentioning the fact that the stock markets are currently overbought. A number of these "technicians" have also been claiming that these "overbought" conditions mean that a market top is in sight and that shorting the market might be in order. To blindly follow this advice might just be a big mistake... Read More Posted by Purely Technical 1 Comments Go to top

• PT: Nightly Commentary

  Thursday, October 26, 2006 6:45 PM

  Agricultural Sector – Sprouting Long-Term Buy Signals? The agricultural segment of the commodities markets has been experiencing a painful decline over the past decade or so. Recent developments, however, might be suggesting that a change in the long-term trend is afoot. Read More Posted by Purely Technical 0 Comments Go to top

• AMZN - woohoo!

  Thursday, October 26, 2006 2:39 AM

  AMZN had a beautiful day today... Read More Posted by Purely Technical 0 Comments Go to top

• Today's Hot Sectors

  Wednesday, October 25, 2006 5:07 PM

  The Oil & Gas Sector is rocking today. Utilities are also doing well and metals continue to rule the roost. Here are some charts of indices related to the Oil & Gas and Utilities sectors. Read More Posted by Purely Technical 0 Comments Go to top

• PT: Day of the Metals Sector Stocks

  Wednesday, October 25, 2006 1:07 AM

  In this weekend's newsletter, we'd asked you to watch the Metals sector closely. Almost on cue, the metals stocks started showing a number of breakouts and continuation moves today. Check out a few charts inside. There are 50 more where those came from, btw, complete with annotations of technical parameters, entry triggers, targets and stop loss levels... Good start to this week, let's keep it going! Read More Posted by Purely Technical 0 Comments Go to top

• PT: Two Breakouts to watch for over the Next couple of days

  Tuesday, October 24, 2006 6:50 PM

  Lets take a look at a couple of stocks that might be ready to breakout imminently - CVS and DISH. Read More Posted by Purely Technical 0 Comments Go to top

• PT: WEEKLY NEWSLETTER Featured Article (October 22, 2006)

  Monday, October 23, 2006 6:47 PM

  The following is a featured article from this week's Purely Technical. Metals - A Coiled Spring: The Industrial and Precious Metals markets have traded in a tight range over the past few months. As these 5-year charts – of the DJ AIG Industrial Metals Index, and the continuous contracts of Gold, Silver, Aluminium, and Copper, respectively – show, the secular bull market in commodities is still very much alive and possibly coiled for another spurt upwards. Read More Posted by Purely Technical 0 Comments Go to top

• PT: Silver - Massive Move Coming...

  Friday, October 20, 2006 11:44 PM

  Silver - Massive Move On the Cards... Oh boy, this chart of Silver, really gets me excited. Tension has been building up within a symmetrical triangle for 6 months now. A breakout (either up or down) out of the pattern is imminent. Such a breakout is expected to bring about a $5-6 move (that is nearly 50% of the metal's current level). Read More Posted by Purely Technical 0 Comments Go to top

• PT: BKX at Rim Line

  Friday, October 20, 2006 6:52 PM

  Purely Technical - NIghtly Commentary (Oct 19, '06): The Banking Sector has been a big reason that the general market has been able to rally so strongly for the past few months. The Banking Index had broken out of what appeared to be a Cup and Handle (formed between May and Sept) targeting 121 over 2-4 months. Over the past couple of days, BKX has slipped a bit and is now sitting back on the CnH rim line at ~113. The index needs to hold above this level on a closing basis or else the Cup n Handle will have failed. Read More Posted by Purely Technical 0 Comments Go to top

• PT: EBAY - Leaving the Rest Stop after a Cup 'n Handle

  Thursday, October 19, 2006 11:08 PM

  EBAY - Leaving the rest stop after a Cup... n' Handle A nicely formed Cup with Handle pattern on this stock's chart is looking set to run its course. Price has made a return move over the past 2 weeks and has pulled away after the non-technical event (earnings) that occurred last night. Volume is picking up and the stock should be ready to accomplish the CnH target over the coming weeks. Read More Posted by Purely Technical 0 Comments Go to top

• PT: CHK Breaks Downtrend

  Thursday, October 19, 2006 9:51 PM

  Breakout Alert: CHK CHK has broken the intermediate trend downtrend today an is moving closer to our target. Read More Posted by Purely Technical 0 Comments Go to top

• PT: Livestock Prices GSC Index

  Thursday, October 19, 2006 6:10 PM

  Purely Technical Nightly Commentary (Oct 18, '06): Tonight's commentary will cover the short to medium term picture on Livestock Prices - Goldman Sachs Commodity Index (GVX).... Also please check out over 30 stock picks provided complete with annotations showing trigger, target and stop loss levels.. You can view them at our Stockcharts.com Public Listing. Read More Posted by Purely Technical 0 Comments Go to top

• PT: US Dollar at Resistance

  Wednesday, October 18, 2006 7:28 PM

  Purely Technical Nightly Commentary (Oct 17, '06): Tonight's commentary will cover the short to medium term picture on the US Dollar Index... We also have 7 new stock picks for you... Read More Posted by Purely Technical 0 Comments Go to top

• PT N: Yellow and Black Gold Bottoming at Support?

  Tuesday, October 17, 2006 7:59 PM

  Purely Technical Nightly Commentary (Oct 16, '06): Yellow and Black Gold Bottoming at Support This daily chart of Crude Oil (Continuous Contract) shows the shellacking that “Black Gold” has taken over the past 2-3 months. That was around the time that the collective financial media seemed to start getting infatuated with this and other commodities. It seemed like nary an hour would go by without one talking head or another proclaiming on TV that Crude was more likely to hit 100 before it would hit 60 again. We don’t buy it (the sell argument, that is). We do think that the charts are close to saying, “buy it”, however. Read More Posted by Purely Technical 0 Comments Go to top

• PT W: S&P All Time Highs Ahead?

  Tuesday, October 17, 2006 7:58 PM

  Purely Technical - Weekly Newsletter (Oct 15, '06) - Featured Article: "S&P on its Way to All-Time Highs Set in 2000?" This Weekly chart (included inside) of the S&P is showing what now looks like a bonafide Head & Shoulders Bottom.... that targets 1515-1550. ... This week's Newsletter contains annotated charts (Long-Term and Short-Term) of a number of Major U.S. and International Stock Market Indices, Commodities Markets and Ancillary Indices. Access the newsletter to read all about significant developments on these charts... We are glad to announce that our weekly newsletter is now available in a brand new format that will allow easier reading and printing... SIGN UP for YOUR copy!!... Read More Posted by Purely Technical 0 Comments Go to top

• PT Edu: Head and Shoulders Bottom (Bullish Reversal Pattern)

  Saturday, October 14, 2006 6:36 PM

  Introduction: The head and shoulders bottom, also known as inverse head and shoulders, is considered a significant bullish reversal pattern, whose occurrence usually signals the end of a major downtrend. The pattern is mainly characterized by three successive troughs, of which the middle trough (head) is the deepest while the other two (shoulders) are more shallow and usually somewhat similar in size. The resistance line that connects the intervening peaks is called the ‘neckline’. Read More Posted by Purely Technical 0 Comments Go to top

• Purely Technical: 30+ Stock Picks (Long and Short) - 'Purely Technicals' Nightly Commentary (Oct 12, '06):

  Friday, October 13, 2006 6:44 AM

  The markets gave us some excellent action today. In last night’s commentary we’d mentioned that a sharp move might be on the horizon. We got a sharp move today. However, is this the beginning of a move to higher levels yet, or is it the swansong of a spasmodic cyclical bull market? We’ll soon see… Either way, recent action has given us a number of breakouts and a number of setups that might well prove quite profitable in the near future. We have done some research and would like to present you with over 30 new trading picks – some on the long side, others on the short side – to add to your research folder. Read More Posted by Purely Technical 1 Comments Go to top

• PT: Bond ETFs - 'Purely Technicals' Nightly Commentary (Oct 11, '06)

  Thursday, October 12, 2006 5:00 AM

  We saw yet another dull day on the markets, today. This tight range is going to give way to a very sharp move pretty soon. So buckle your seatbelts and be prepared to ride some short-term volatility in the days ahead. In the meantime, let's check out a couple of Bond ETFs that are trading at a crucial juncture at the moment. Read More Posted by Purely Technical 0 Comments Go to top

• Purely Technical: 9 Sectors Ready to Move – ‘Purely Technical’ Nightly Commentary (Oct 10, ’06):

  Wednesday, October 11, 2006 6:48 AM

  9 Sectors Ready to Move – ‘Purely Technical’ Nightly Commentary (Oct 10, ’06): The markets were basically unchanged, once again, today. So, in tonight’s edition we’ll investigate the charts of a handful of market sector indices and sector ETFs that look ready to move over the coming weeks. Charts covered tonight: XLE, XLB, $XAU, $BKX, $DJUSCH, $NHG, $XNG, $XOI, $OSX. Read More Posted by Purely Technical 0 Comments Go to top

• Purely Technical: 13 Stocks Ready To Move…

  Tuesday, October 10, 2006 6:30 PM

  13 Stocks Ready To Move… - ‘Purely Technical’ Nightly Commentary (Oct 09, ’06): Given that today was Columbus Day, it seems that most of the big fish decided to take an extended weekend and the markets went nowhere, as a result. So, rather than give you a play-by-play of the paint drying exercise that masqueraded as market action today, we’ll present to you a handful of stocks that look ready to make a move over the coming sessions, given a little bit of help from the market. Read More Posted by Purely Technical 1 Comments Go to top

• Purely Technical: Potential ST Top on Dow Industrials - Intraday Commentary

  Monday, October 09, 2006 8:24 PM

  Ad-hoc Intraday Commentary piece... It looks like there is a negative divergence, each, on RSI and on MACD. Watch for a breaking of the internal trendline (Upper Channel Line on chart) to confirm this potential Sell Signal. Read More Posted by Purely Technical 3 Comments Go to top

• Purely Technical - Weekly Newsletter (Oct 8, '06)

  Monday, October 09, 2006 8:22 PM

  The stock, commodity and currency markets, all seem to be at interesting junctures at the moment. It seems likely that a turnaround is on the horizon for many, if not for all, of these markets. The US stock markets might be in the process of putting it a short term top. At the same time, certain commodities markets might be putting in a bottom, after a sharp decline. The US Dollar Index seems to be moving out of a short term bottoming formation. Inside, you will find annotated charts that show all these developments, together with brief descriptions of what each market seems to be saying through its recent price action. Read More Posted by Purely Technical 0 Comments Go to top

• PT: Educational Material - Head & Shoulders Top (Bearish Reversal Pattern)

  Sunday, October 08, 2006 6:53 PM

  Introduction: The head and shoulders top is the quintessential technical pattern. It is a bearish reversal pattern, whose occurrence usually foretells the end of a major uptrend. The pattern is mainly characterized by three successive peaks, of which the middle peak (head) is the tallest while the other two (shoulders) are somewhat smaller and usually similar in size. Read More Posted by Purely Technical 0 Comments Go to top

• PT: The Darling Dow - Coming Upon Resistance

  Friday, October 06, 2006 4:52 AM

  Taking a step back and looking at the bigger picture, we must say that things are looking a little overheated, at least for the short run. We could sit back and relax, just like several talking heads seem to be doing, but to do so would not be becoming of us as a fair and honest service. We report what we see, not just what we would like to see. Accordingly, we're going to take a bit of a cautious tone in tonight's article and move your attention to the possibility - maybe even a likelihood - that the markets are presently near a short-term top. Does this mean that we believe that a longer term top might be forming? Not necessarily... Read More Posted by Purely Technical 0 Comments Go to top

• PT: "Lines In The Sand" - S&P 500 Annotated Chart

  Thursday, October 05, 2006 4:03 AM

  During the trading day yesterday, October 3rd, we'd posted the following comments (paraphrasing slightly) in our public listing at Stockcharts.com - "Most indices seem to have bounced off support today. If these levels hold, expect a sharp rally over the next few days. The levels that have been tested are quite significant and are now to be considered our lines in the sand, above which the market is in bull territory and below which the bears come back to the party". Oh boy, and what did we get today. A sharp rally, no doubt, and with the Dow at another "record" close CNBC and the rest of the cheerleading juggernaut are in hyperdrive. Read More Posted by Purely Technical 1 Comments Go to top