Slippery Oil?
Most people think of Kevin Haggerty only as a daytrader. After working with
him on his last two seminars and the two TradingMarkets conventions in Las
Vegas, I can tell you his methods are applicable to other time frames. He uses
them to analyze things over longer time periods, and I do as well.
Someone emailed me yesterday to inquire why I was somewhat skeptical on the
Oil Service Sector
(
$OSX.X |
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PowerRating), while they felt the group was still strong.
Looking at the above chart, one can see why. The index has formed a 1-2-3 top on
the daily chart, and bounced yesterday at resistance of a short-term trendline,
drawn from its recent move down out of the 1-2-3. Today the index is following
through from the trendline bounce, and trading lower.
Watch out for the 1-2-3 top and bottoms on the daily charts when analyzing
sectors. While you will not always get "the" top or "the" bottom, you can take
advantage of short-term tops and bottoms for excellent trading opportunities.
Have a great weekend!
Duke
P.S. This will be my last column for the next three weeks while I am on
vacation. Eddie Kwong and Mike Brooks will be writing this piece while I am
gone. See y’all in mid-June.