Interesting Chart Patterns To Monitor In Coming Days...

[MR]

Curious... is this a potential Type 1 setting up in the daily Google (GOOG)?
(see sample chart below)

[MR]

PS.. to paraphrase a famous American, Wimpy (of Popeye fame)... "I will gladly pay you back tomorrow if you buy me a 100 shares of GOOG today"

PSS- IT's A JOKE! I am just lamenting out loud because I am almost fully invested and don't have enough cash to buy GOOG again even if I wanted.)

[MR]

Posted at another site earlier, sharing here for my AGET friends....

Marc Rinehart Tueday, May 9th, 2006, 11:30AM-- The overall US market remains remarkably resilient going into a key Fed guy speak time. Metals and energy theme sectors remain obvious leaders. I noticed the other day some big banks doing well. Other good areas are some retail like Lowes, some capital good companies, rails still acting ok, some airspace, coal definitely attractive on pullbacks.... select airlines like a CAL maybe, and now of all things someone upgrades an automobile company that has been beat up. I cannot imagine today's strength lasting forever until after the new Fed chairman does his main talking tomorrow. It just seems strange to have waves of buying across the board in so many different areas, at least in the strongest leaders within different sectors and groups. If things work out as we might like, it might very end up being a pretty good week before trading Friday afternoon is over. (but, forgive me if I am wrong. I am an eternal optimist, so sometimes I only see the good, not always the bad lurking below the surface.... I will keep digging deep to see if I am missing something. For now, getting a good feeling though.... hope it lasts!). . . .

[MR]

We should start to see a little more of a pullback leading up to Fed decision-making time tomorrow. There is a little bit of weakness starting to creep in this afternoon in the Nasdaq, for example. I think the energy and metals stocks up today will remain strong though. Some techs could be challenged... partly because of DELL disapppointment is the guess.

[MR]

Philippe,

Noticing for the 3rd day in a row KC wheat acting like you predicted or suggested a while back. I think we are starting to see evidence of what you commented on recently. Just a little more higher and it will become more evident to others what you where looking for.

I look forward to see your next post.

Sincerely,

Marc

[MR]

I marvel at how easy sometimes just a little double checking for some MOB's and maybe some simple observations
(ie, a key trendline support) can be all it takes.

I own 100 shares of this stock, USG.

[766456]

Hi Marc,

I noticed that you changed the Elliot wave settings to long term in the chart of USG. Is this an approach you use with stocks that are trending up for a very long time?

Roger

[PRH]

Here is the daily chart on July KC Wheat - The trend is still up but there is divergence on the oscillators.... Risk control is essential.

PRH

[MR]

I did it mostly because I think it is a wave 3 still in progress and not a 3-4-5 as the regular wave count shows. It is one reason why we put in the alternate wave counts to provide visible other options for people to reference to. When I did, the longer term wave count just helped confirm what I suspected. Also, yes, in general, the alternative longer term wave count does seem to help one keep perspective in stocks when because a lot of times they do tend to trend longer than say a futures contract might.

Originally posted by 766456
Hi Marc,

I noticed that you changed the Elliot wave settings to long term in the chart of USG. Is this an approach you use with stocks that are trending up for a very long time?

Roger

[MR]

Good job on wheat. Always appreciate your comments. - marc

Originally posted by PRH
Here is the daily chart on July KC Wheat - The trend is still up but there is divergence on the oscillators.... Risk control is essential.

PRH

[MR]

Other than the lower PTI, TZOO has some attractive qualities. At some point one has to wonder if this could be an aggressive Type 1 setting up? Curious... what do you think?

[pointzero]

Short Squeeze

If the recent advance was a result of a short squeeze, it may not be sustainable.

[MR]

TZOO Morning Update: TZOO opened up in almost a breakout behavior from the pullback pattern. I can see aggressive traders now being more attracted to this stock for a potential move back to the previous high test again??? (or let me put in a more personal way, if my money were not tied up in other things, I could see myself buying 100 sharse today with a stop loss below that trendline, or a hair below the upper MOB on that chart.) Track this and see if the logic works out.

[MR]

Take a look at symbols CL #F, HO #F, and HU #F. Remember, we have not hit the peak summer energy demand yet, which typically gets kicked off with Memorial Day weekend. If today's rebound is the first hint this recent pullback is over, it will mean within a week or so (my guess) mutual funds may very well start rotating some more money back into the energy sector stocks. It certainly is something to monitor.

[MR]

The more I read and learn about FCX, the more I am glad I took a little trade in it last week. Maybe, if things work out ok, I can even try to stay in it longer if it ends up extending beyond my target.

Here are some things I am learning about Freeport-McMoRan Copper and Gold:

FCX has a giant Grasberg mine in Indonesia. The Grasberg mine is believed to hold the world's third-largest copper reserves and one of the biggest gold deposits. Miners have been racing to churn out minerals at a record pace to cash in on fast-rising commodity prices. Grasberg churned out 793,000 tons of copper last year -- up from 515,400 in 2004. Gold production rose to 3.55 million ounces from 1.58 million in the previous year.

FCX is basking in record prices for both gold and copper metals and said on Tuesday said it would pay shareholders a special dividend of 75 cents per share on top of its regularly-scheduled quarterly payouts. The special dividend is payable June 30 to shareholders of record as of June 15. That isn't too far away if I can hold my 100 shares that much longer.

Last month FCX reported that first-quarter profit nearly doubled on skyrocketing copper and gold prices, even as production fell. Gold and copper prices have gone up even more since.

When I looked for mining stocks some specialize in copper, some in gold. This one mines both! Most people think about this companies gold properties, but did you know the price of copper is up 75 percent this year! FCX has big reserves. Demand is way up, and competitors have mining problems in Indonesia and Mexico. There are long term fundamentals involved here, such as strong demand for these, and it has a P/E of 12! If we remember, even in the hayday of the internet bubble, where tech and internet stocks had outrageous pe's and often no profits, this mining company has both, very good profits and what looks like it is a reasonable valuation.

Merrill Lynch even said the past month about Freeport, one of the world's largest producers of copper and gold, it is a cash-rich company and should continue to generate healthy cash flows to enable it to continue paying special dividends and to engage in more share buy-backs.

FCX is backing off a little today but the trade still looks ok. Maybe it is just wishful thinking, but I still have a good feeling about this stock.