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

To: mred1998 who wrote (40054)	3/10/2005 9:50:27 PM
From: chowder	Read Replies (3) \| Respond to of 206223

>>> A lot of energy stocks, after hitting new highs, have pulled back to their 20 day moving averages. This seems to match one of your favorite patterns. Are you planning to make any purchases playing the bounce? <<< No sir! The stocks may bounce but that is a selling opportunity in my opinion. A lot has been said in recent days about "this time is different." Well, that works both ways. On this pull back, what is different this time is that prices are now "closing" below support levels that held on previous pull backs. That's a lot of technical damage to overcome, in my opinion. You are starting to see lower lows being established, where the low on this pull back is lower than the low on the previous pull back. I think we are now transitioning from Stage 2 (uptrend) stocks to Stage 3 (sideways or topping) stocks. I think any bounce plays here should be very short term in nature as I think they will be met with more selling. I could be wrong in my analysis, but what's different about this pull back, when I look at a lot of charts, is that we are now seeing lower lows. We are seeing prices closing below support levels, and that's a sign of weakness, not strength. stockcharts.com[h,a]daclyiay[d20041210,20050310][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G dabum