While it’s very possible we could see a few days of buying, we’re not oversold by past standards. We still need to fall through the 20 level and then see some positive divergence before a meaningful bounce can occur.

40 years young and having the best statistical season ever….It’s not easy being a Vikings fan for the past 24 years, and hopefully tomorrow will end our Superbowl drought. This is a great Farve compilation for any sports fan (Packer fans being the exception).

This sector broke out last Wednesday and offered a nice pullback opportunity on Friday morning at the open. Given that we closed at the day’s high, this looks like a sector that could run higher for weeks to come.
Here is my watchlist in this sector: IVN FCX PCU TIE SLT IPI RTI

Breakout of lengthy downward trendline and recapturing of it’s 50dma in convincing fashion. The oil sector should deserve your attention for the coming weeks. Here is my watchlist:

WFT NBR EXH RIG NOV CAM HAL NE SLB SII DO BHI TDW BJS

Intelligent discussion here worth watching. I think it’s obvious where I stand.

…That the U.S. Oil Lobby Doesn’t See Coming

By Kent Moors, Ph.D
Contributing Editor
Money Morning

John Felmy has been the chief economist of the American Petroleum Institute (API) for years. He’s well respected. And I appreciate his experience. But the two of us disagree more often these days.

We most recently locked horns at Malone University in Canton, Ohio, last week, where we were debating the future of oil. (Actually, when the invitation was made, I was supposed to debate Sarah Palin. But she pulled out to go on the road and pitch a book she didn’t write.)

Nonetheless, something disturbing emerged from the debate.

I still find John a pleasant enough fellow, but the mantra coming from the API, the mouthpiece of the oil industry, is wearing thin. They want us to believe that the oil market is still fine, still humming along, still providing the best energy value. You’ve heard the argument before: Gasoline is cheaper than milk or bottled water.

This time, John tried the latest API version of this sleight of hand: Whatever price you need to pay, oil is still cheap, still plentiful, still the energy of choice.

Sorry folks, the API just doesn’t get it. And what it refuses to get is becoming one of the most important factors investors in the energy sector will need to watch – carefully. This is all about supply and demand. But it’s not the traditional lecture from Econ 101.

This one is going to roll out differently.

Over the next several months, oil will begin losing its balance. As it falls off the wagon, risk will escalate. And that will require greater due diligence by investors. But as the risk increases, so will the number of opportunities. I’ll show you how to profit from them as they surface.

But first, here’s the problem with the API’s approach. Read more »

I remember a month ago I was waiting for the Nasdaq to complete a head and shoulder pattern that never materialized. Tonight as I was going through a few charts this reverse head and shoulder bullish pattern stood out in the most obvious way. For the simple fact that everyone else is looking at the same pattern, it’s highly unlikely that this is not going to play itself out.

However, the market could easily humble the shorts out there and actually follow through on this pattern. For that reason it’s prudent to be flat here, long above the neck line, and short below today’s close. It’s sure not as much fun as crayons..