Monday, August 17, 2009


COF (Capital ONE) looks to be at a critical level. It has rallied to break above $35 for the last 3 consecutive days. The last two days are definitely NOT what you want if you are long COF. It has closed exactly where it has opened. This is showing clear indecision and COF seems to be running out of steam to the upside. These pattern has come after an extended run higher. (highest price in stock for 2009) Furthermore, the volume today picked up. Today's volume of 14.63 million is the higest daily reading for COF in August. I will be looking for continuation to the downside in COF.

This chart above is Transocean (RIG.) Daily chart. I have had RIG on my radar for last few days. I was patiently waiting for a break below (out of) the triangle. This was accomplished today, but the move was pretty much made overnite so you had to be in on friday. I am looking to get involved on the short side on a rally back to the lower bound of the triangle. This will be a good level of resistance to get short.

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