Trader MD

My logic?

We're basically putting in a negative divergence. Crude oil has made new highs or essentially stabilized around those highs, yet most energy and alternative energy plays have not.

Take a look at the drubbing solar stocks have been taking over the last few weeks. They are basically energy related plays.

Other alternative energy plays have began to break down as well. Wind stocks come to mind and of course, look at the coal stocks getting killed today.

Speaking of Coal stocks. As far as the daily charts go, these look like the 2 most promising short patterns.

Here's ACI (Box/Rectangle Pattern) & MEE (Double Top).





I have no position on either of these just yet, but will be looking for some type of a low volume kick back.

Posted by Trader M.D. at 8:26 AM 0 comments

Labels: ACI, Coal, Energy, MEE

I finally had the chance to put together a decent chart review last night. One thing that really stuck out to me (aside from the $VIX being far from elevated as everyone has mentioned), is the relative strength of the energy sector.

IMO, we're going to need a flush out of the weak holders in the XLE / energy sector related stocks in order to setup any type of real tradeable move higher.

Until then any bounce will be nothing more than a kick back rally.



Of course it'd also be nice if the $VIX and put/call ratio surged higher as well.

On an unrelated note: Thank God. I finally have a legitimate internet connection up and running. That took way too long.

Posted by Trader M.D. at 7:13 PM 1 comments

Labels: Energy, Index