Monday, March 5, 2012

Evening Thread

SPY Daily Chart
Perhaps it felt worse than it really was.  Yes, all of the major indexes were down but the uptrend is still intact and the IWM was actually up a few pennies.  Finviz also shows 150 new highs and 57 new lows.  CNBC was negative all day and AAPL did finally back off after making yet another all-time high.  The biggest negative in my mind is the continued weakness of the transports (DJ-20) as it continues to roll over from the early February high.

Monday afternoon


AMZN is trading in what looks like a continuation pattern. The trend is to the the downside, sooo.... when you are not celebrating milestones with the family, this may be a way to fund the next one.

Morning Thread

Gator's Chart of the Day: RSX
RSX: Weekly Chart
RSX: Daily Chart
The Russian elections are over and Vladamir Putin won.  No surprise there but some uncertainty has been removed even if it was only a tiny bit.  I do not claim to be "the axe" on Russia and I don't play in a band and I rarely wear a tie and I never wear a pink shirt, but I can see what's happening on these charts.

The weekly chart shows a fairly well defined W pattern and price has now cleared the vertex just above 32.  Volume has been above the 50 period moving average.  Looking at the daily chart (same "W" from the weekly) we see the same characteristics and the 200 day sma has now been cleared.  A test of the vertex level would also correspond to a test of the 200 day sma and I would expect to see strong support there.

Commodity inflation has been in the news and Russia has a great plenty of natural resources.  They are the number 1 producer of oil accounting for 12% of world production (Saudi Arabia is number 2 with 10%) and the number 1 producer of natural gas (19%) and number six in gold production (6.9%.)  The RSX could be a nice addition to one's portfolio.

Production figures are 2010 estimates.  Source: Wikipedia