Chris Lau - Seeking Alpha

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Monday, August 04, 2008

Essential Reading: ChartWatchers - The StockCharts Newsletter

It is essential that traders monitor leading indicators, economic measures, and general development in politics. The first two are very well-covered by stockcharts.com.
In the most recent newsletter (August 2), the following key important points may be summarized:
  • Monthly reversal in oil suggests a downside target for oil at $70 (crude oil breaks is in danger of breaking the head & shoulders pattern to the downside)
  • S&P 500 rally was not convincing: trading volume was not convincing
  • Nasdaq has failed several times to break resistance
  • A play for the consumer discretionary sector may be emerging
Subscribe here: http://stockcharts.com/help/doku.php?id=support:chartwatchers

Interestingly enough, SBUX was featured as a trading play.

"At Invested Central, we trade stocks, we don't invest for the long-term. However, the technical picture of Starbucks (SBUX) is quite compelling for a longer-term investor. The name brand is obvious and on the heels of a horrible quarter, you can pick it up on the cheap."

Chart Source: http://stockcharts.com/commentary/archives/20080802/

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