Im looking at the DJIA chart and trying to work out if infact its a Long Legged Doji on the charts from last nights candle..
Definition:
Long Legged Doji is a doji characterized with very long shadows. It shows the indecision of the buyers and sellers. It is one of the important reversal signals.
Recognition Criteria:
1. Market is characterized by a bearish mood and downtrend. 2. Then we see a Doji that gaps in the direction of the downtrend. 3. The real body is either a horizontal line or it is significantly small. 4. Both of the upper and lower shadows are long and they are almost equal in length.
Anyway, I think tonight will be the night where the short term direction will be decided, a green night would be to me that the ralluy still has more legs short term.. maybe that 9200 mark will come to fruition..
Stocks I will be watching today include ABY, ESG, FMG, MCW, BGD, FRS, SWN, CFU, AOK, EXT and AIO
With oil on the rise (now $71.63us/b) I am liking some of the smaller producers. 2 which have gained my attention the last few days are WHL Energy (WHN) and also Austex Oil (AOK). Both have decent acherage in the US, with AOK producing oil and as of yesterday gas. Although the production levels are relatively low, we are going to see a ramp up in the short term, I suspect the next quarterly will confirm this. WHN from what I understand is very similar, though currently not producing.
These stocks are a bit of a safe haven at times like this, zero debt and a slow and steady income stream on the back of a low market cap.
Charts I liked yesterday included BGD, FRS, EXT, ESG, MBN and TRF. Will post some of these later.
