Markets finished a dull session Monday as the Nasdaq continues to look as if it wants to take out this beautiful handle in its cup base. Sometimes however when things appear to look so good, its too good to be true. Ignore my silly adages and just focus on price action. The calls for a correction, continue to mount, with tweets of no bears left, and that can be true, but again everyone has a prediction and they are meaningless. The tape supersedes everything. Energy and utilities led the way Monday and the ETF USO caught my eye today. It is closing in on a long 9 month cup base trigger of 39.64, and remember the longer the base the greater the possibility of success. Last weeks 4% gain was the best of 2014 and was accompanied in above average weekly trade. The surging crude price last Friday finally did some damage to the airline sub sector of the very healthy transport group. Can that be a contrarian sign that the price of oil is about to recede? Best of breed ALK fell almost 5% last week, slicing its 50 day SMA last Thursday. Notice how the round 100 handle proved to tough to get above. The rising price of crude did help the solar sector, as the group becomes more attractive as an alternative energy source. TAN galloped higher by almost 2% Monday as it narrows in on a double bottom trigger of 44.45. It took out its 50 day SMA last Thursday after stern resistance there for the prior 2 weeks and after receiving good 200 day SMA support in late May.
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