Stocks Oil Sat Jun 18Th 2005

Both the stock market , Penny Stock Trading and oil prices , How Bi Weekly Mortgages Can Save You Money rallied recently, which seems to be a paradox, because high oil prices , Insurance Glossary Part 1 are negative for earnings (i.e. a higher production cost , Debt Counseling Dont Fall For The Scams and a higher consumer tax). However, the stock market , Mortgage Loan 40 Year Mortgage Loans was worried about another "soft patch," of slower economic growth, , How Bi Weekly Mortgages Can Save You Money and the sharp rise , The Fico Score Misconceptions in oil prices , Leverage Balance Transfers suggest the U.S. economy , Should You Get Out is still expanding at above trend growth. , Vanquish Your Debt With A Debt Consolidation Loan

The two charts below are same period daily charts of SPX and OIH. The short-term technical indicators suggest SPX is near a top, e.g. VIX closing at a multi-year low, VXN closing at an all-time low, and the NYSE Oscillator's 20 day MA at an extreme level. Also, Nasdaq , Discover The Hidden Gold Riches Revealed In The Honest Money Principle closed at 2,090 Fri, and 2,100 is major resistance. SPX rallied to 1,219.5 Fri, and 1,220 may be resistance. SPX may be creating a bearish head & shoulders pattern, with the left shoulder at 1,217.9, the head at 1,229.1, and the right shoulder at 1,220 (see chart). SPX may pullback, consolidate, , Leverage Balance Transfers and become more volatile next week. Major support is about 1,200, the current 20 day MA, which SPX held over the rally, and 1,200, in general, which is psychological support and a congestion area. Major resistance is at 1,220 and 1,229 (the recent high).

OIH closed at an all-time high and created a bearish hammer Fri. Major resistance is Fri's high at 104. Major support is at 100.30 (previous highs), and the 10 day MA, currently at 99 1/4. There's also an open gap at just below 95 1/2, and Jul Max Pain is still 95. OIH rose about 20 points, while oil rose from $47 to about $59 a barrel. Consequently, if oil falls , Vanquish Your Debt With A Debt Consolidation Loan to the low $50s, then OIH may retrace 50% of the 20 point rise. , Debt Relief 101 Understanding Your Options And Avoiding The Scams The steep rise , Penny Stock Trading (also, see MACD) suggests a consolidation , Credit Cards Other Benefits period soon. Both the RSI and Oscillator (ULT) are severely overbought, particularly for an index. , Certified Financial Planners

Perhaps, the oil market , Mortgage Loan 40 Year Mortgage Loans has discounted future events , Home Equity Loans Tax Deductions What Are The Tax Advantages Of A Home Equity Loan that would influence oil prices, , Repayment Of Loans Lessening The Bitterness Of The Process e.g. stonger than expected global growth, , Life Insurance 101 Understanding Your Policy the start of hurricane season Jun 1st, which may affect oil platforms and refineries in the Gulf, end-of-the-quarter window dressing, and the 4th of July holiday, which is the start of the summer driving season. Also, I may add, the U.S. oil strategic reserve is filled up. So, the federal government isn't draining oil from the market. , Settlement Cash Advance Industry Is Not So Bad After All Moreover, China's economy , What If A Stock Does Not Pan Out is "overheating," and it's to China's benefit to grow at a sustainable rate, , Mt Metastock Part 2 Relative Strength Comparison Rsc The Key Success Tool In Trading By Stock M to prevent inefficiencies.

Next week is a light economic and earnings data week. So, oil prices , Need A Free Credit Report Get Yours Now may have a more influencial effect on stock , Importance Of Options Trading Education To The Investor prices. Consequently, SPX puts, for example, may hedge OIH puts. Both SPX and OIH are at high levels. Economic reports next week are: Mon: Leading Economic Indicators, Thu: Unemployment Claims , Pay No Closing Costs For Refinancing The Advantages Of A No Closing Cost Loan and Existing Home , How To Stop Getting Credit Card Offers Sales, and Fri: Durable Goods Orders and New Home , Investing Your Way To Retirement Sales. Also, the U.S. weekly oil inventory data Wed should move oil prices. , Vanquish Your Debt With A Debt Consolidation Loan I believe, the positive correlation in stocks , Credit Repair After Bankruptcy Your Options and oil will decouple next week, because the longer oil prices , E Learning A New Approach To Become Successful stay high, the more negative it will affect earnings of non-energy stocks. , Home Loans To Erase The Red Marks From Your Credit Report Arthur Eckart, PeakTrader.com

See PeakTrader.com Market , Moods And Market Timers Overview section in Forum Index , How Bi Weekly Mortgages Can Save You Money for charts.

Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, , Mortgage Loan 40 Year Mortgage Loans e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds , Credit Card Penalties from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio , Home Loans To Erase The Red Marks From Your Credit Report optimization since 1998.

Mr Eckart has developed a comprehensive trading , Home Loans To Erase The Red Marks From Your Credit Report methodology using economics, portfolio , Discover The Hidden Gold Riches Revealed In The Honest Money Principle optimization, and technical analysis to maximize return and minimize risk at the same time. This methodology has resulted in excellent returns with low risk over the past three years.