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We will see Obama on TV more than Ryan Seacrest over the next 48 to 72 hours. He will be all over the major networks, Kerry too. Tuesday night he speaks to the country, as he tries to make his pitch for an attack on Syria. I’ve heard a thousand opinions on how this will all turn out, but no one knows. It’s even tough to speculate on how the market will react. Every war is a little different and market reactions are also unpredictable.
The action in the Nazzy was bullish last week and as I wrote in Saturdays post, and the Dow Jones and S&P are improving technically. No “all clear” has been signaled yet.
There are still some great looking charts out there, so here are some that I will be focusing on early this week.
WLT has been under accumulation recently and has a decent shot of moving higher. Actually some of the coal stocks are looking a little better. As you can see in the chart below it is forming a base or cup and can break out if it gets some volume. Buy the 14.95 level.
Here is a longer view of WLT. If it does break out I see a potential target around the 200 day moving average (yellow line) around 23 longer term. The point and figure chart also get you to the mid 20’s.
STNG The shippers are hot again. How long it will last I’m not sure, but they are under accumulation. See DRYS, GNK and DSX. I don’t want to chase those names, but STNG may be starting a move, as it broke out of its downtrend line (see the white line) on Friday. Volume has been good and its MACD is trying to cross positive. Buy the 10.00 level.
SAPE has a nice daily chart and is forming a very bullish flag on the weekly chart. Buy the 15.95 area.
Good luck this week. See you on the chat room in the morning.