Sunday, June 21, 2009

Rally In The Brewing




here are the charts i will be watching next week. I have been telling you guys that thus far the selloff we have seen resembles a pullback within the context of a bullish trend, well plowing thru the weekend charts, i am finally getting the proof i was looking for. The selloff has spiked a fresh new spike in bearish sentiment, adding new shorts into the markets and even causing many bulls to think that the rally is over(me included). THE PERFECT STROM for a charge higher. Best sectors i think will be tech and energy.



It will be an interesting week that's for sure.
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7 comments:

  1. greenlanderJune 21, 2009 at 2:26 PM

    Yep I agree some huge inflows into XOM Friday
    The pullback doesn't seem threatening based on vol and it's trajectory. I bet a lot of bears are in the boat who piled in late week

    Sitting on XLE calls now

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  2. mvwJune 21, 2009 at 3:06 PM

    Hi Stewie, long time reader, first time commenting. I agree with your assessment.

    The bears are getting over zealous. Market leaders are still holding good support, eur.usd appears to be bull flagging and is already getting overextended to the downside.

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  3. NYC TraderJune 21, 2009 at 3:24 PM

    I concur.Energy sector is due for a bounce. Short bus is getting too crowded.Looking to play ERX and TNA a next week.

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  4. StewieJune 21, 2009 at 3:33 PM

    greenlander: XLE, OIH and ERX looks great here.

    ReplyDelete
  5. StewieJune 21, 2009 at 3:34 PM

    Mev. Wallst.

    "The bears are getting over zealous"

    100% agree and that's a big reason for my bullishness here.

    ReplyDelete
  6. KidDiscoJune 21, 2009 at 9:46 PM

    2 cent:

    http://www.screencast.com/t/graIagSc

    ReplyDelete
  7. StewieJune 21, 2009 at 10:16 PM

    hi kid disco: yes, that is also a very possible scenario.

    ReplyDelete