Why I’m Still Short OIH
On
Monday, I mentioned two
specific charts that were “screaming†at me. Those charts were the
S&P and Nasdaq
E-Minis. We were focused on the 60-minute time frame and the fact
that a Bearish Gartley was completing on each.
Well today, we had a strong gap open to complete our Bearish patterns against
our Fibonacci price resistance zone. In fact, we were even given some great
reversal clues if you follow candlestick patterns, as
(
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doji candle as it hit completion levels for our parameters to short.
Regardless,
the patterns were worth 20 points in
(
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(
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At this point we are approaching support already, so the “easy†money is behind
us off of the patterns. Now the battle between longs and shorts begin. I have
listed support on the 60-minute charts of these contracts below.
To continue to bring closure to previous columns, I
discussed a short opportunity in Caterpillar
on
Friday of last week.
(
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bearish patterns and Fibonacci price resistance. So, on the daily chart below I
have listed my first objective area.
I have received emails about the
Oil Service HOLDRs as well. Yes, I’m still short
(
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PowerRating) off of my
Triple Crown Zone from 55.54. I’m looking for 51.50ish as my objective based on
Fibonacci price parameters.
Have a great night!
P.S. Interesting to note (and not that I make trading
decisions on this information) the Nasdaq Short Interest Ratio was at 3.3 as of
the end of March. This is the highest it has been in over 20 years! That’s
called excessive pessimism. Whether you trade with this kind of information or
not…it should give pause.