Interesting Chart Patterns To Monitor In Coming Days...

[jims_id]

Marc

Hi Marc:

What do you think of this little stock below. I don't think it has much copper mining exposure like FCX, but it does (supposedly) mine gold and silver.

Best of luck.

Jim

[MR]

Jim,

BGO does look like a nice stock. I would be very attracted to any pullbacks to as low as 2.50 for possible Type 1 buy setups. (If it is still real strong, it will not trade below 2.85 near term.) Take a look at silver as well. (for example, SIZ4) You recommend any silver mining stocks worth checking out as well. PAAS? SIL?

Marc

[MR]

I will admit to not doing a great deal of work defining this setup, but if I had seen this earlier, I would have bought into this hourly QQQ chart, at the Short Ellipse with breakout MOB support, stop loss below MOB, and Target the next W3 projection. Very simple analysis, but I like it because of the ristk/reward ratio and overall pattern. Good PTI, good XTL as well. Just an observation... will see how it worked out later. -Marc

[MR]

Interesting new stock, Top Tankers Inc. (TOPT)owns and operates a fleet of seven tankers (initial fleet).,,, see the wave 3 in progress chart attached. Watch it next couple months for a Wave 4 pullback and a possible Type 1 Buy setup.

[MR]

Many investors don't know this, but I have noticed over the years, when gold and other precious metal commodities rise, it has an direct (indirect) effect on certain countries indexes more than others. For example, take a look at the Australian All-Ordinaries and Canada's Toronto index. Both seem to be doing well lately. They are countries rich in precious metal resources, and have many mining companies trading on their exchanges. If I could find the South African exchange, bet it also acts the same way. Wondering to what degree the Russian exchange acts when precious metals are trending up? While I am certainly not an expert in this area, I have noticed in the past when metals are doing well, it seems like so are the Toronto and Australian indexes. If I had more data to work with I could try to help you more with building a stronger case for this. I even think it helps their currencies as well, or they seem to have a relationship to some degree? Any Canadians, Australians, South Aftican's want to add their knowledge to this topic?

[MR]

Here is an update on that QQQ chart. Stopped out for a very small loss.

[MR]

Here is an update on HGSI 120 min....

Also, I had to cover trades today for money managment concerns. Gave up $1,000 profit would have had if closed positions yesterday,
but still ended up net postive on these trades. Was a good month. Now will stand aside and wait for next opportunity.

Marc

[DuaneG]

Hi Marc,

Thanks for the follow-up on HGSI. I followed suite myself and switched to a 120 minute chart for the ease of comparing notes. Looks like the neckline support gave way as predicted. I'm somewhat interested in the upcoming MOB. Very, very close.

[DuaneG]

I'm not a huge fan of inverse head-and-shoulder formations, but I came across this daily chart of IFLO. I thought I would share. Notice the tweezer bottom as the elipse came in. Thoughts and comments as always are welcome.

[jims_id]

Crazy

Marc:

I know this setup sounds nuts, but I've been wondering....could we be in an irregular wave 2 correction on the S&P. I know the Dow charts aren't confirming, but there some sentiment readings that may indicate unusual pessimism. E.g., Take a peek at the Rydex nova to ursa ratio. Just a half-baked thought.

Jim

[MR]

Jim,

I did a chart like you showed. (using Signal SP #F only difference) It is attached below.

Yes, Jim, it still really is a good possibility.

Rather than focus on the wave count, I think the MOB and Ellipse (see chart) offers the best thing to monitor. If that MOB in particular holds, then we have an irregular a-b-c. If not, it will only get more irregular, so to speak. She holds, is lots of room for a swing move back up.

Prediction to watch for.... Bush wins, market rallies; Kerry wins, market dips down more. Also, keep watching energy complex.... she keeps going up, pressure keeps building, eventually pulling down the stock market. Those are the two biggest concerns right now for the market. Since Elliott Wave theory is based on measuring human psychology quantitatively, those are the things we should really focus on the next few weeks that will help one interpret the technicals better.

If your irregular a-b-c idea (which is a good one) is valid, we should stablize now, build for a little rally, u think?

Good luck my friend. It is some of the toughest markets seen in a long, long time.

Best wishes, Marc

[MR]

Re: Crazy

Jim,

Could you do me a favor and tell/show me a little bit more about this Rydex nova to ursa ratio?
I am not familiar with this? Always interested in learning something new. Maybe other readers here
would also be interested in learning more about it.

Thanks, Marc

Originally posted by jims_id
Marc:

I know this setup sounds nuts, but I've been wondering....could we be in an irregular wave 2 correction on the S&P. I know the Dow charts aren't confirming, but there some sentiment readings that may indicate unusual pessimism. E.g., Take a peek at the Rydex nova to ursa ratio. Just a half-baked thought.

Jim

[MR]

If you were to focus in the chip sector, or computer product related sectors, what stocks would you consider buying? It could be any type of trade idea.

For example, I am seeing the potentials building for very oversold, bigger Wave 4 rallies in some of these stocks. Others are well on their way to trending up the past few months.

I am looking for your input. What stocks do you like and why.

For example, I am seriously considering buying PMCS today as a bottom pick, with stop below, only because I see divergence building on the 5/35, and what I see is a big wave 4 rally potential. But, the truth is, I have limited funds and just bought 5,000 shares of another stock. I want to invest wisely with what is left over in portfolio.

So, if there is anyone out there, please share with me your picks. (again, I will make my own choice so don't worry about being wrong. It will be my own problem. I am genuinely interested in others opinions right now.)

Thanks, Marc

[jims_id]

Hi Marc

Hi Marc:

I get the rydex nova/ursa ratio free off Bernie Schaeffer's website. Here's what he says about the ratio:

" A sentiment indicator that we monitor each day is provided by the Nova and Ursa funds from the Rydex Series Trust. The Nova fund is designed to have a target beta of 1.5. In other words, using shares of equities, stock index futures contracts, and options on those securities and futures, the fund has a target performance benchmark equal to 150 percent of the S&P 500 Index (SPX). Traders who invest in this fund are considered bullish on stocks. The Ursa fund is designed to provide a performance inverse to that of the SPX by using a combination of short selling and options on stock index futures. Investors in this fund are considered bearish on stocks.

We can get an accurate view of the sentiment picture by comparing the amount of assets in each fund. Specifically, we divide the total assets in the Nova fund by the total assets in the Ursa fund to arrive at a Nova/Ursa ratio. *****A high Nova/Ursa ratio indicates an extreme amount of optimism (everyone investing in Nova) and a low Nova/Ursa ratio indicates an extreme amount of pessimism (everyone flocking to Ursa)******."(emphasis added by me).

Attached is the current chart of the ratio. Seems pretty low, but I may be way off bas. Other sentiment readings (AII, Investors intelligence, etc.) may and I think do show a different picture.

Regards,
Jim

P.S. I'll be in communicado for a while so good luck to all.

[MR]

Hi again Jim,

Originally posted by jims_id
....I get the rydex nova/ursa ratio free off Bernie Schaeffer's website....

Thanks for sharing this information.
Will research it more. Appreciate it.

Originally posted by jims_id
.... P.S. I'll be in communicado for a while so good luck to all....

Me too.... same,
ditto above.... gotta really
focus on markets right now.



Take care,

Marc


PS-- Jim, am watching BGO since you mentioned it...
going to figure a way to get into it this fall.
Thanks for the idea.