Exposing Ideas to the Envelope of Serendipity

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Monday, April 5, 2010

Bulls Continue to Score

While we've seen some sector rotation and sideways consolidation in recent days, the bulls are still controlling the game for now, and buying on dips has continued to be a profitable trading strategy. Commodities-related stocks in particular are moving into position with an increasing number of bullish setups and base breakouts in precious metals, steel stocks, and oil stocks looking attractive in here. Precious metals made significant moves last week, and while there's room for some very near-term backing and filling, the group looks well-positioned for additional gains over the near to intermediate-term. Let's take a look at the GLD chart and its unconventional inverse head and shoulders pattern, and then USO, which appears to be setting up for a significant breakout.

Don't forget that tonight is the NCAA championship, with the Duke Blue Devils and the Butler Bulldogs earning the two coveted top slots. Congrats to both for making it this far, and may the best team win tonight (Go Duke!). Be sure to check out our two bracket pools for current standings, along with Rosabarba's wonderful on-blog coverage and updates.

Trade well!

-- Brinkley
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