ENERGY AND TECHNOLOGY ON THE MOVE

I brought up the natural gas stocks last week as a possible trading opportunity. Even though I was a bit late on the recommendation, the natural gas stocks have moved nicely over the last three trading days. Many energy stocks have had similar moves. The coal sector had a nice move today with Patriot Coal (PCX) moving up 22%! One of my favorites stocks in this group is JRCC. This whole group should be watched over the next few weeks...but be patient. The divergence in the market continues. We reached another yearly high today in the S&P 500, but the technical indicators continue to show lower highs...and they are near overbought conditions. The trend is still up so we will continue to look for bullish positions until that changes. RIMM had a nice move today. It is up about $3 since the breakout. If you have several contracts, you might want to sell a few to lock in some of the recent gains. SOHU broke out of its triangle today, but the volume was on the lighter side and the breakout wasn't huge. If you bought the breakout, you could use the lower support line of the triangle as the stop. If you didn't buy the breakout, you might want to give it one more day for confirmation. Another pattern I like is IBM. Its formed a bullish ABC pattern over the last few weeks and today it moved above its 10 day moving average. If it breaks out above $120, it could really take off. AAPL could also be ready to move again. Look to see if it can break above $174. Thanks for the success stories. Keep them coming.