Investorstoday

Monday, January 9, 2012

Technical Analysis, January 9, 2012




Last week I posted a few charts with the USD, VIX, S&P 500, Dow Transportation, and Utilities.  I wanted to draw a narrative to start 2012 which is opening on an up note. 

The VIX is breaking lower and heading back to the 15 level after spending much of the fourth quarter elevated as investors worried about news emanating from Europe.

The USD is nearing a significant resistance level while forming a couple of triangles. 

The Utilities have pulled back after jumping higher while the Transports appear ready to break out to the upside of an ascending triangle formation. 

The S&P 500 is nearing resistance as earnings season opens.

Being that the end of the year represents the closing of 2011’s books, companies want to get bad news out of the way early and possible set the bar low for 2012. 

So for the next week or so it appears as though the market will ease back a bit and prepare for the next leg up.

But if you read the article on Hungary today, trouble is right around the corner.  We are not out of the woods yet.

Onto this week….

WTIC




WTIC touched resistance and since pulled back.  While the newsflow has been focused on events in the Persian Gulf the oil price has not broken resistance which indicates a potential buy the rumor, sell the news resolution.  Those who are long WTIC should put some stops in place. 

Brent



Brent is lagging once again having moved above the 200 day moving average but not showing the strength required to test the next resistance level at 117. 

We need to resolve this pattern soon or else Brent risks falling back to $100 due to the buy the rumor/sell the news resolution mentioned above. 





Disclaimer
Communications are intended solely for informational purposes. Statements made should not be construed as an endorsement, either expressed or implied. This article and the author is not responsible for typographic errors or other inaccuracies in the content. This article may not be reproduced without credit or permission from the author. We believe the information contained herein to be accurate and reliable. However, errors may occasionally occur. Therefore, all information and materials are provided “AS IS” without any warranty of any kind. Past results are not indicative of future results.
PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN THE STOCK, BOND, AND DERIVATIVE MARKETS. WHEN CONSIDERING ANY TYPE OF INVESTMENT, INCLUDING HEDGE FUNDS, YOU SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS: OFTEN ENGAGE IN LEVERAGING AND OTHER SPECULATIVE INVESTMENT PRACTICES THAT MAY INCREASE THE RISK OF INVESTMENT LOSS, CAN BE ILLIQUID, ARE NOT REQUIRED TO PROVIDE PERIODIC PRICING OR VALUATION INFORMATION TO INVESTORS, MAY INVOLVE COMPLEX TAX STRUCTURES AND DELAYS IN DISTRIBUTING IMPORTANT TAX INFORMATION, ARE NOT SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.
Before making any type of investment, one should consult with an investment professional to consider whether the investment is appropriate for the individuals risk profile. This is not intended to be investment advice or a solicitation to purchase any of the securities listed here. I will not be held liable or responsible for any losses or damages, monetary or otherwise that result from the content of this article.





No comments:

Post a Comment