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Bob,
I have traded the energy sector, including CHK,
quite successfully, on a short term basis, over the past year. The sector
is so volatile, however, I see no sense in holding long positions during
the down swings and giving profits back.
For what it is worth, my methodology is signaling
upturns in the whole energy sector for next week. My best buys are
DVN,ECA,EOG,SJT and WRES however CHK also has a buy signal for
Monday.
My methodology likes confirmation of a reversal
before entering the trade so I will be a buyer when Friday's high is exceeded by
4 tics or at lower prices on a strongly bullish day.
Best Regards,
Jim White
----- Original Message -----
Sent: Sunday, May 21, 2006 11:25 AM
Subject: Re: [RT] post questions
Chesapeake Energy... Both of you are depending on charts and
I'm depending on earnings. The stock has come down along with all the
other natural gas issues because the product has come down so far. Many
do not seem to be aware that they have sold 70% of the next two year's
production at nearly twice what the spot price is today. Throw in the
CEO making a huge purchase in the open market and the fundamentals can not be
ignored. None of these things take into account the approaching
hurricane season and what will happen to the cash price for natural gas once
the first named storm moves into the gulf. If those fundamentals are not
enough, CHK currently sports an 8.4 PE It's been over $40 in the
past 12 months and has a 10+% growth pattern.
So now, we have
two views by technicians and one by a fundamental trader. All views are
interesting and no one is always right or always wrong and neither are styles
of investing.
Good luck next week everyone,
Bob
At 10:27
PM 5/20/2006 -0700, you wrote:
You
see, Here is what I mean.
I assume that this is Chessy Energy that you are talking about.
I have price in a range between
34 and 25.50. It is in an up move until 25.50 is taken out and
then this retracement has a target price of 26. Right now it is
at support from a longer term move down at 28.75. You should get a
retracement here and the retracement shouldn't take out the 33
level. If 25.5 is taken out the next target to the downside is
22.
This current retracement up
should meet resistance at 30 dollars and hit a target of about 30.50.
About a 1 point move from here. If long I would exit
there.
So you would be
100% invested when I am exiting 100% and looking for a congestion area or
further down retracement before another up move would start.
We are both looking at the same
chart and seeing different things. Right now the major move is down
and anything to the upside is nothing to get excited about. The upside
is tradable and can be profitable. Like everything else in life,
what is seen is in the eyes of the beholder.
Once again, just one man's opinion.
Ira.
PS. Finals on Monday
and then a vacation. See all when I return. Have a good
week.
----- Original Message -----
- From: Ben
- To: realtraders@xxxxxxxxxxxxxxx
- Sent: Saturday, May 20, 2006 8:35 PM
- Subject: Re: [RT] post questions
- Hello Bob
- I have attached a chart of the perfect stop
loss
- the levels were I would buy would
be
- at a close above 29.27 will buy
25% of position with stop loss at 27.98
- will add 25% to the position on a close above
29.78
- buy full 100% of position at close
above 30.68
- sell 25% at profit at 31.10
- sell another 25% at 31.89
- sell rest at 32.36 or move
stop loss to 31.1 with increasing that stop loss
every time the stock makes a higher hi
- Ben
- ----- Original Message -----
- From: BobsKC
- To: realtraders@xxxxxxxxxxxxxxx
- Sent: Saturday, May 20, 2006 10:32 PM
- Subject: Re: [RT] post questions
- A kind and generous offer Ben.
- It seems to me that traders try harder every year to get ahead of
historical swings and this time, it's the summer doldrums they are trying
to beat. So, instead of waiting for the dreaded summer months, they
are bailing now to beat the rush. The good news is even these swings
can be predicted if one just looks at the past performance of the markets
versus chronological changes and geo political events, etc. Whatever
the trend is, the traders will be trying to get ahead of that trend.
- The fundamentals are still good. P E's are in line and earnings
are growing. Inflation is low and controlled. Employment is
strong
- while on the negative side, housing is falling off and some consumers
are being pinched with ARM's. I was 100% cash until late this week
when I began buying again and will continue to buy as it falls.
- To get your kicked off with your offer, here is one for you. I
already own CHK at $28.80 and will buy more if it dips below that.
The CEO recently bought a large block and they have sold 70% of this
year's and next year's production at $10 so as natural gas falls below $6
cash, it means little to CHK in terms of earnings. What do you think
about it?
- Best to all,
- Bob
- At 03:19 PM 5/20/2006 -0400, you wrote:
- hello
- you are about to make a trade?
- before making it
- post it
- get a second opinion
- the answer will be posted with charts to
explain reasons why yes or no
- Ben
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SPONSORED LINKS
Business
finance uk Business
finance course Business
finance online course
Business
finance class Small
business finance Business
finance schools
YAHOO! GROUPS LINKS
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