FCX vs. CHK - Breakout Backtesting.

CHESAPEAKE ENERGY CP(NYSE: CHK)

&

FREEPORT MCMORAN B(NYSE: FCX)

Above is a chart of CHK at the beginning of the 08 and after an almost 2 year consolidation. If we look we can see that the "headfake" or sometimes known as"search and destroy" techniques, took affect on CHK before it's rocketing breakout move.

The first chart shows what it looked like and the 2nd chart shows where CHK went after the headfake and breakout.

I am looking at FCX in the same respect here, as of today. Sure, we could break down and I would put a sell-stop at 98.50 for that, but we could also be seeing the same thing that happened to CHK in the beginning of the year happen with FCX.

CHK made a move back to the 200 EMA at tested the main trendline and as you can see by the 2nd chart, and FCX is doing nearly the same thing. This also means the degree of the trend angle could be shifting higher, meaning the trendline is steepening.

VIX - 1st Resistance - Quad Strategy Holding.

Market bounce is more probable as the VIX and DJIA will show - not too mention we have oil prices falling.

This is the first resistance for VIX. We could fall off resistance and market bounces aggressively, or we still penetrate through to the dotted blue line. Either way we are entering convergence of DJIA and VIX - look at the 1/2 Quad Strategy and the VIX resistance.

FCX testing trendline.

FCX Freeport-McMoRan Copper & Gold Inc. is testing a intermediate trendline. If we get a "hammer" candlestick on 20 million+ volume then we go higher, if not we have to respect the sell-stop at 98.50..

List of Candlestick Patterns.

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_pattern_dictionary

NOTE: A trendline is only a trendline if it can touch 3 different points of reference. Two pointed trendlines are in fact not trendlines.

Coal Stocks - Take the Money and Run - MEE, ACI, CNX.

MASSEY ENERGY CO(NYSE: MEE)

ARCH COAL INC(NYSE: ACI)

CONS ENERGY INC(NYSE: CNX)

Original Analysis Below.

http://polluxtechnicals.blogspot.com/2008/06/coal-stocks-aci-mee-cnx-short-term.html

Profits of 12-15% + have been achieved since I posted to short these coal stocks. At these levels it is prudent to take the postion off. If you still feel they have more downside, then only stay short 25% of the original postion and cover the rest if you get a 5%+ more downside.

Overall the short swing worked and you have to respect it, take it, and now watch for the buy signals, or something different to emerge from them.

FCEL and BLDP - Play of the Month.

BUY:

FUELCELL ENERGY IN(NasdaqGM: FCEL)

BALLARD POWER SYS(NasdaqGM: BLDP)

Time Frame (3-5 month swing - with profit strategies during this period - stay tuned)

Ballard Power is a weekly technical chart that has come to an inflexion point. This looks the best of the two and shows more symmetry than Fuelcell, which looks as if it trades in more of channel. Also, these are election plays and one of the best sources for the world wide bus market, next to natural gas, but as nat. gas gets more expensive, these type of systems look more attractive for domestic budget issues.

1/2 QUAD STRATEGY - Last buy triggered.

The 3rd and last entry point for the 1/2 QUAD strategy would be completed at these levels. The market should bounce as the probabilities are increasing here, but anythings possible.

SLV- BUY. Silver follows Golds lead.

All of this commodity boom is based on shrinkage of Amercian Wealth! What's in your wallet? Bank paper, which is paper backed up by more paper, or something that will never erode like a clunk of silver? For all of the bankers out there, this is the phsycology that is keeping price higher and will continue until we stop the evaporation of Amercian wealth.