Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: GREENLAW4-7 who wrote (34209)	8/6/2004 8:41:20 PM
From: chowder	Read Replies (1) \| Respond to of 206325

The OSX may have a 2-3 day bounce next week but, the longer term charts are looking bearish to me. A couple of weeks ago, I indicated here that the OSX and OIH were showing signs of weakness. I noticed that money flows were weakening and volume patterns were showing a negative divergence on the weekly charts. Those weekly charts are not only confirming the analysis made at that time but continue to show negative divergences. In this first chart, note how the Stochastic is now looking to drop below the 80 line. This is a sell signal when that second line drops below 80. And, this is on the longer term charts. Also note the trend as indicated by the MACD. Back in Feb and Mar, the trend was much stronger at $75 than the current trend was at $76. When one looks at those weekly volume bars, the selling bars far exceed the buying bars. Rallies are being sold into. stockcharts.com[h,a]waclyiay[pc20!b50!f][vc60][iut!Lh14,3!La12,26,9]&pref=G In this next chart, the thing that really sticks out are the money flows. Note the huge money flows back in Feb and Mar as noted by the CMF indicator. Note the money flows over the last couple of weeks as the buy the dips crowd didn't have the punch to offset the sell the rally crowd. stockcharts.com[h,a]whclynay[pb50!c20!f][iut!Lc20]&pref=G Very short term, the OIH and OSX may see a bounce for a day or two however, over the longer term, the indicators are displaying weakness. This could change in the very near future, but for now, I think patience is the key to insure longer term success for those wishing to pick up new positions. Those holding positions should monitor money flows. If profits haven't been locked in by now, targets should be established so as not to give all of those gains back. dabum