Saturday, February 09, 2008

Review of last week weekly chart reading and prediction on 27 Jan

$NIKK: wrong, it didn't reach that range although initially it went up.

$HSI: wrong, it slumped due to mainland market.

UYG: wrong.

SKF:

INTC: wrong.

AAPL: wrong.

DPTR: wrong.

COF: correct.

PHM: wrong.

AMD: wrong.

$INDU: wrong.

$COMPQ: wrong.

$CPC: correct.

$VIX: wrong.

$USD: wrong.

$XJY: wrong.

GLD: correct.

Conclusion: don't read weekly chart any more.

Review of last week daily chart reading and prediction on 28 Jan

DIA: basically correct. It went above 126 and then go down.

DRYS: wrong. Not a candidates for selling short yet.

UYG: basically wrong. It went up and down.

AAPL: correct.

INTC: correct.

DPTR: wrong, it went up.

COF: wrong, it went up and down.

PHM: basically correct.

AMD: basically wrong, it's bearish, and trend has been down.

LCC: basically correct.

VIP: basically wrong, hasn't down to 30 yet.

C: correct, correction was coming since 1 Feb.

JPM: correct. But hasn't reached the target yet.

MS: completely correct. Target reached.

GS: correct, hasn't reached the target yet.

BAC: correct, small correction since 1 Feb.

AXP: correct.

IBM: correct, the trend was down except for an initial up.

MSFT: correct, target over-reached.

GOOG: correct, target over-reached.

AMZN: correct, target over-reached.

BIDU: correct.

EBAY: wrong, it went up.

HPQ: correct, target over-reached.

ORCL: correct. target reached.

NOK: basically correct, it's still below EMA(50).

T: basically correct, target hasn't been reached.

RIMM: basically correct, target hasn't been reached.

ABX: wrong. STO was topped.

TC:

X: it went up and down.

RIO: wrong, it went up and down.

FCX: correct.

AUY: not entirely correct. it went up and down.

GG: correct.

XOM: correct.

DRYS: correct. It's weak trend, but still went up.

FDX: basically correct, hasn't reached target yet.

UPS: correct. STO was up, it went up. It rebounced at 69.

BA: correct.

GM: correct, it went up and down.

DD: basically wrong.

MMM: basically wrong, STO was up, and it went up.

GRMN: basically correct, it went up and down.

JNJ: basically correct, it went up a little and down.

TEVA: wrong. it touched the bottom of Bolling Band and went up.

MCD: correct, now the trend is ok.

DIS: wrong, it went up.

PG: wrong, it didn't change much.

KO: basically correct, trend is weak.

WMT: wrong, it went up and down.

VWO: wrong, it went up and down.

EWZ: correct.

ILF: basically correct.

FXI: basically correct, but it didn't touch 165.

XLE: basically correct, it went up and down.

XLB:

GDX: correct.

DBA: don't know, not correction yet.

MOO: basically correct.

----

Statistics:

Correct: 25 (41.7%)
Basically correct: 15 (25%)
Unclear: 4 (6.7%)
Basically wrong: 5 (8.3%)
Wrong: 11 (18.3%)

Weekly chart reading

US market indices

$INDU: from the high point of 13780 on 11 Dec to the low point of 11634 on 22 Jan, DJIA started from 50% of retracement and went up, then went down and rebouced to 50% again on 1 Feb. The big trend is still downward, which will likely break the previous low on 22 Jan after the triangle pattern is broke out. Before that, it will likely have a small OE rally to ~12530. If 12720 is not broken later, it should be a good entry to purchase put options to take advantage of the bear movement.

$SPX: similar with $INDU, target is 1370.

$COMPQ: STO is at 20, the volume is ready to go up. It may possibly rally from the bottom of the Bollinger Band to 2400 again. On 11 Dec and 26 Dec it formed a double top pattern, on 4 Jan it broke out downward, and then retraced to 38.2% on 1 Feb. If the triangle pattern is followed, it will slump at about 2350.

$CPC: has gone up to 1.15, this shows that the sentiment is a bit bearish.

$VIX: trend unclear, the last candlestick pattern is undetermined direction.

$USD: the candlestick chart shows a double bottom pattern. STO is crossing above 50. It will likely go up a little bit before dropping down again.

GLD: trend is up although whipsaw exists and the price is high.

0. Holdings of stocks and options

$NIKK: STO is going down again and crossing down 20. MACD shows the short-term trend is upward. It has been going down from the top on 7 Dec, and retraced 38.2% on 4 Feb. In the next few days it will likely to to 13700 first to form a double bottom pattern.

$HSI: the level of ~25k is a strong resistance in the near term. By the end of next week, the triangle pattern will converge between 24500 to 25000, then it's a good chance to play a strangle to take advantage of price breakout.

UYG: trend is down, it may re-touch 31 in the near future.

GOOG: up trend, STO/OBV is optimistic, candlestick pattern is bullish too. However it might be tough to break 510--520 where many transaction were there in late July to early September in the last year. A breakout above 520 is expected, but it may also dive below 500 again.

INTC: it is now in a upward channel. STO is climbing above 20, and volume is optimistic. In the end of next week, it will likely go up to 21.6--22.

GRMN: it will go up and at least to 75, then toward 80.

1. Financial

XLF: down trend. In the next week if it can stay above 27, it may likely go up to 30 in the near future, otherwise it may dive below 24 (medium term?).

C: volume is down, STO seems ready to go up. Next week it will likely go up.

JPM: unclear, price is too volatile.

2. Technology

IBM: it will go up in the next week, the target is 110 by next Friday. It seems IBM always oscillates between two parallel trend-boundaries.

AAPL: trend is still down. The candlestick pattern in the last two days is bullish. The STO and OBV are bottomed out. It may jump to near 150 to test the 38.2% retracement and fill the gap.

MSFT: volume is down, STO is flat below 20. The candlestick patterns shows it may go up.

AMZN: downward chaneel, STO and volume seem ready to go up. In the next week it may likely dive below 67.5.

BIDU: in triangle downward channel. In the next week it may converge at about 217 and meet strong support there, and then have a breakout.

T: STO and volume show the trend is down. 36 is a support level, so it may likely rebounce in the next week and go above 38.

RIMM: long term trend is down. A double-bottom pattern is forming. It may have a breakout above 95, if on the next Monday it goes above 90.

3. Resource

XOM: both STO and volume show the trend is down. In the next week it may go up if it stays above 81.5, then 88 is the resistance.

4. Transportation

DRYS: trend is up. In the next two days there will be a breakout, most likely go up.

FDX: there is a weak medium-term up trend. Watch out and see if in the next week it will stay above 87.5 and break the resistance of EMA(50).

UPS: In the next few days it will go up, then watch out if it breaks 73.5 and goes up. If not, it will go to 66.

5. Industry

BA: it may go up and converge at about 81, then a breakout is due, may go down further?

GM: unclear. STO and volume show that it will go further down.

DD: a breakout of triangle pattern is due.

MMM: both STO and volume show it is going down. If the parallel down channel is not broken (break above 81), it will go further down to below 72.

6. Medical

JNJ: go down further. 62 seems a support level.

7. Food, consumers

MCD: trend is up. STO is going to cross above 50.

PG: trend is weakly up. Wait for the breakout.

KO: similar with PG.

WMT: trend is down. In the next few days the parallel upward channel should be broken first, which means the price has to go below 48--48.5.

8. ETF

VWO: trend is down. Wait for the parallel upward channel to be setup, and price is going above 97.5.

EWZ: a breakout is due very soon. If it can go above 77.5, the near term is bullish.

ILF: similar as EWZ. Watch out breakout near 240.

FXI: it will go up to 155 first, but then a breakout is needed to go further up which is unclear at the moment.

XLE: going up, wait for the breakout.

XLB: up trend. Wait for the upward breakout.

GDX: going up, target is 50.

DBA: still going up. Not the right time to go in!

MOO: the trend is down, wait for the breakout to setup the new bullish channel.