Oil Rises Big...

DJIA + 12.78, +0.11% SP500 + 3.18, +0.25% NASDAQ Comp. - 8.70, -0.36% Russell 2000 - 6.35, -0.87% Exchange NYSE NASD Advancing 1,321 1,062 Declining 1,730 1,742 Oil $121.18 +$5.62 Gold $839.00 +$22.70 $SOX 361.45 -1.22 Strongest Sectors: XLE +2.51%...XLU +0.96%...XLB +0.86% Weakest Sectors: XLF -1.82%...XLP -1.09%...XLV -0.64% Oil moved strongly higher on Thursday fueled in large measure by increasing tensions between Russia and the U.S over the conflict in Georgia. Oil stocks CVX, XOM, HES and COP closed higher. ETF’s XLE, USO and UNG also moved higher. We mentioned in Wednesday’s post the bottoming pattern we saw in coal, Ag, gold and steel stocks. Higher oil prices today also gave a boost to many other commodity related stocks. Coal stocks BTU, CNX, MEE, JRCC, ANR and KOL moved higher out of their bottoming patterns as did Ag-related stocks POT, MOS, CF and AGU. Steel stocks X, SCHN, NUE and STLD however did NOT participate in Thursday’s move up. Financial stocks in general were lower today. One bright spot FNM gained more than 10% after losing about 50% of its value since last Friday. FRE was down 9 cents but up from its intra-day low. We saw a lot of bull flag patterns in stocks, indexes and the sector ETFs today. As you check your watchlist tonight notice if you see the same. Our short-term trend status is neutral. Sector Watch Up Trending: XLI, XLK, XLP, XLV, XLY Sideways: XLB, XLF Down Trending: XLE, XLU Index Commentary The DJIA formed a hammer that confirmed Wednesday’s bullish harami …closed near the 30 DMA and 38.2% Fibonacci level from the July 15 low. The SPX confirmed Wednesday’s bullish harami…closed above its 20 and 50 DMA and above the high of the low day. The Nasdaq formed a lower high and lower low spinning top bounced at the 38.2% Fibonacci and up from its 20 DMA…Thursday is the low day. The SOX formed a hammer 3-day bull flag pull back…closed just below its 50 DMA and at 38.2% Fibonacci…Thursday is the low day. The RUT formed a lower high and lower low spinning top at its 20 and 200 DMA…bounced at 38.2 Fibonacci…closed ten straight days and 11 of the last 12 days above its 200 DMA…Thursday is the low day. Stock Commentary Up Trending RIMM continued its bull flag bounce with a white candle AAPL moved lower in its bull flag AMZN formed a bullish engulfing bounce off its 20 DMA in its bull flag NIHD failed to confirm Wednesday’s inverted hammer just below 30 DMA…H&S target 46.50 ESRX formed a white candle in a bull flag…Thursday is the low day UAUA lower white candle in a bull flag…Thursday is the low day NDAQ failed to confirm hammer in bull flag…Thursday is the low day WRC formed a doji…failed to confirm hammer…Thursday is the low day ONXX moved lower in a bull flag pattern…bounced at 200 DMA…Thursday is the low day HANS formed a bullish harami in horizontal bull flag Down Trending Watch the price of oil on Friday…lower oil prices could alter these commodity related reversal technical patterns POT broke above H&S neckline and 20 DMA MOS broke above double bottom resistance X formed dark cloud cover after small double bottom breakout …new chart target 150 SCHN dark cloud cover before potential double bottom breakout at 71.30 AGU broke head & shoulders bottom neckline at 85…with a chart target of 97 FWLT double bottom breakout around 50.60 with chart target of 55.60 CNX rose after small head & shoulders bottom breakout…chart target 75 BTU continuation of horizontal breakout…chart target of 73…closed above 30 DMA Sideways Trending AMLN formed lower high and lower low white candle near the 26 support area CF three white soldiers…potential chart target 151 FSLR large white candle continuation…potential chart target 288 CLF formed doji at 30 DMA Thursday’s Action Moving Up: POT, FSLR, CF, MEE, BTU, BUCY, AEM ANR, BIDU, CNX, GDX, AGU, MON, MOS, FWLT, RIMM, AMZN, FMCN, IPI Moving Down: X, MA, SCHN, GS, AAPL, STRA, NDAQ, PCLN, UAUA, WRC, LDK, HANS, LCC Intermediate Term Market Trend: Up Short Term Market Trend: Neutral