Guys,
Friends don't let friends drive HC or UCO without at least a warning. First of all, you know me, and you know that I'm pretty bearish on the January Effect (Not!--so far I'm right), the economy, the builders but also energy for now.
I look at the charts for HC and UCO and see no reason for a turnaround based on today's action.
stockcharts.com[h,a]dhclyyay[pd20,2!b50!b200!b25!i!f][vc60][iut!Uk14!Ub14!Ud20!Lc3!Lf!Lh14,3!La12,26,9]
Since I'm not vested or invested here all I'm doing is looking at these charts with a cool eye. I see a car careening down an icy street but I don't see the driver putting on the brakes. I haven't seen all the charts in the world, but I don't recall seeing this many long red candles COMPLETELY violating the bottom Bollinger band. No end in sight (yes, it could reverse tomorrow, but there's nothing in this chart that whispers that phrase to me).
As for HC:
stockcharts.com[h,a]dhclyyay[pd20,2!b50!b200!b25!i!f][vc60][iut!Uk14!Ub14!Ud20!Lc3!Lf!Lh14,3!La12,26,9]
It's not as relentlessly bad as UCO's, but it's not pretty. And today's action is not a reversal, not by a long shot. So, for those who are worried that there won't be a better oppo than today to buy these two, my humble opinion is relax: better prices look to be on the horizon.
Kb |
