Monday, December 22, 2008

Point and figure charts

I pointed out the breakdown in XOM in my last post. Today I'm taking a look at the point and figure charts for oil and the energy stocks.

It's not a pretty picture. We've got double bottom breakdowns across the board. I really thought oil would have mounted some kind of significant counter trend rally when the dollar broke down. It just didn't happen. As a matter of fact nothing except gold managed to bounce to any significant extent.

I'll say it again. Wihout energy participating it's going to be tough for the markets to sustain any kind of significant rally.