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December 9, 2005

Charts

With the exception of the shinies vaulting higher, not much of anything happened today. For the first week in five, the bears made an attempt to take control of the market. The bulls came out to do battle with them today, and the result was a rather choppy market that fought its way higher. Today's battle goes to the bulls.

Early in the day, news of a possible settlement deal between Research in Motion and NTP helped pop RIMM shares $3.50 in a 6-minute span. The stock then traded more or less sideways the rest of the day. This type of volatility is why I decided to shed my short and stick with long-dated puts on RIMM.

Intel's update last night turned out to be a non-event as far as market-gauging goes. Although the stock opened down 2%, it regained the entire loss within the first half hour of trading, then worked its way higher to close with a gain of 1.5%.

Since there is not much else to talk about, I'll sign out for the week, leaving you with a few charts to ponderÂ…

A big battle is taking place over the dollar. Which way it breaks will have a huge influence over equity markets.

dollar index graph

If gold has anything to say about it, the dollar will break downwards

spot gold graph

Oil is attempting to break out of a 4-month funk.

crude oil graph

One of my favorite housing shorts has a sore shoulder. A definitive break above the MA would call for a protective cover, while a definitive break below the shoulder line could prove to be very profitable.

stock graph

Disclosure: Short INTC, BMHC; Long INTC, RIMM Puts

 

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