Commodity And Energy Plays

As we enter the first full week of trading for 2009, the bulls are in control of the market, albeit with low volume.

There is reason to be suspicious of the volume, and the possibility that institutional investors may be selling on their return from the holidays. At the same time, the energy and commodity sectors appear ready to push the broader market higher. An abundance of charts have similar patterns, with decent bases and price ready to break above resistance.

- National Oillwell Varco (NOV) looks good over 27.50.

- Bill Barrett Corp (BBG) is already above resistance (now support) with good volume.

- Complete Production Services (CPX) looks good over 9.36.

- Patterson UTI Energy (PTEN), over Friday’s high.

- Cameron International Corporation (CAM), again, over Friday’s high.

- Cliffs Natural Resources (CLF) had good volume on Friday.

- iShares MSCI Brazil Index (EWZ): If commodities continue to rally, it will be good for the Brazilian market.

- STU: Different sector, but similar chart pattern.

- UAL Corp (UAUA) has an interesting diamond pattern, and appears to be breaking to the upside. If oil continues higher, I will be watching to see if this breakout fails, and would look to go short below 10.00. Someday reality is going to catch up with the airline stocks.

- AMR Corp (AMR) is near the top of its range.

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Comment by stan celmer

2009-01-06 15:33:10

I like your site and I trade etf’s.

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