Channeling Stocks

[sludgehound]

Enjoy S & S. Sat & Sun: Article

Enjoy the weekend I meant. Got late and got tired.
hmm End of June leads into another 3 days, the 4th.
Check this short article for a little macro ideas.

http://story.news.yahoo.com/news?tmpl=story&cid=580&e=1&u=/nm/20040612/bs_nm/column_stoc...

Investors probably need not worry much about higher taxes if Democrat Kerry gains the White House since a Republican majority seems assured in the House and likely in the Senate, too, said Greg Valliere, chief political strategist at the Washington Research Group, part of Charles Schwab Corp.

"You would get gridlock, and most investors would agree that is an acceptable, maybe almost a desirable, scenario. Professional investors believe gridlock means they do less harm," Valliere said.

Also these thoughts of mine.
Ignore the Amateur part. This is one of the best, clearest, fastest reads of
the Market. Easy to get direction and possible reversals of major indexes.
Writer is VERY good with Cup & Handle plays!
Only gripe I ever had over the years is when he (and honestly, most others) was
a tad late to the party as to VIX going below 20. He seemed to stick with the
past 4 years of VIX in 22 to 50 extremes. Longer range of years showed that
VIX has had several years in a 12 to 22 range.
But he was quick to adapt to below 20s. I was thinking it could go lower based
on general weakness, history, and confirmed lower VXN/VXO readings (more recent
creations than VIX, with dif input criteria).
But he is master of CUPS on specific stocks in his PAID letter, He only gives
specific stocks AFTER they completed run in free issues for educational purposes.
Free Trial (once every year) shows its worth. Free letter is Weekend & Weds nite.

http://www.amateur-investors.com/Weekend_Market_Analysis_June_12_04.htm

Finally continue to watch the Oil sector (OIX) closely as well. As I mentioned a few weeks ago the OIX had formed the right side of a 3 year Cup and it has now developed a 5 week Handle (H). If the OIX breaks above the 355 level (Pivot Point) then this would likely lead to selling pressure in the market as rising Oil Prices would have a negative impact on our economy. Meanwhile the key support level to watch in the weeks ahead is near 335 which is at the bottom of the 5 week Handle and is close to the OIX's 20 Weekly EMA (blue line). If the OIX breaks below 335 this would likely lead to a drop back to its 40 Weekly EMA near 320 and negate the Bullish looking "Cup and Handle" pattern and potentially have a positive affect on the market.