Chesapeake Energy Corp (CHK)

[ogbull]

girlfriend, CHK was up over 9% on heavy accumulation and on shorts clearing out. No other stock in the sector went so high. It hit resistance at $4.65 as Docenomics told you. Resistance is a physiological barrier, not a tall mountain. The best indicators are found in the RSI, MPI, or STOCH numbers as indicated by this chart (link).

Resistance is simply a price where the new buyers decide not to pay anymore. Good day traders recognize resistance as a point where a high-flying stock may give back some of its daily gains so they either sell at the resistance point if they are long or they short the stock if they are out. They are hoping to pick up a profit when the stock gives back some of its run up. This is a common day trading pattern.

The 5 cents gain (1.11%) and 1.6 million shares traded in after hours tells you that many day traders decided to buy back their shorts or close their positions with a small gain. In others words, many are nervous about holding CHK overnight because they can tell by its high volume that the stock is being accumulated by institutional buyers. Monday will not doubt be another high-volume day.

The fact that it only retraced back in after hours to a 6.7% gain is a strong indicator of the respect that this stock is now getting. It is obvious that more and more traders see opportunity in Chesapeake, which is what I been trying to teach you for months.

I work hard for you because you're my girlfriend, but how are you gonna learn about trading until you take the cotton out of your ears and stick it in your mouth. Seems to me you have no respect for my 30+ years of experience because you are always popping off with some smart remark indicating that I am stupid and don't know a sector move from stock accumulation by institutions. CHK has been under accumulation for ~15 trading days now but Brexit interferred. CHK will also experience a roller-coaster ride likely into the middle of July. Not because this is not the best buy on the NYSE but because many institutions will exit to be replaced by new buyers with long range goals. The more volume we get, the quicker we get through the housecleaning that a once glorious stock must go through on its way back to glory.

I'm with Carl Icahn on Chesapeake. I truly believe this company will become the #1 nat gas producer in this part of the world unless a major buys it out soon. Carl Icahn is a business genius. He has proven it over and over again. He is heavily invested in nat gas and owns a large share of Cheniere Energy (LNG), the LNG exporter. He advocates for shareholders. He's got seats on both boards and is not about to let any stupid moves get by him.

Yes, many shorts beat up on Chesapeake but notice that in all the negative article written there is never any mention of the 8 million acres of oil and gas territory Chesapeake controls. The average price for this land is $22,000 per acre. Even if they sold it for $10,000 per acre, they could easily pay off all their debt. Why in the hell do you think they are holding all this land (money) in reserve? To raise cattle? No my dear. Chesapeake is holding this asset because it is the future of the largest oil and gas producer in North America!

And, sure there are lots of oil and gas stocks with better balance sheets, but what's the use in placing a bet on a horse with very small odds even if it wins. The best bet most of the time is a horse that will pay off at least five to one. $4.51 placed on the nose of Chesapeake Monday morning could easily return $30.00 in less than 2 years. Now those odds are exciting!

On the other hand, if you just want make a $1 a share, pick a nice mutual fund.

I also sense that you are little disturbed inside. I bet you sold out of CHK and missed this run up!