Friday, March 13, 2009

Check out the rally target in Goldman, because if the stock really is going there, the broad averages are likely to go significantly higher as well. Since the stock is likely to be a high-beta performer in any case, it behooves us to scrutinize the lesser charts intraday to find "camouflaged" abc patterns we can use to hitch a ride.

We came within 0.05 points yesterday of hitting the exact low, enabling longs to get on board ahead of a powerful rally. Let's give it another whirl today, bottom-fishing two ticks above a promising Hidden Pivot support at

I mentioned a 112.31 rally target yesterday half in jest, but if you look at the rally unfolding on the hourly chart, as opposed to the daily, you can see that there's enough power to get the stock there. The midpoint resistance is

I was conservative in my estimate Tuesday night and wound up raising it in the chat room to 748+. By day's end, though, the futures had outbid me, putting in a high at 753.00. That left them in good shape to try for 771.75 today, or perhaps

Today's commentary features the sage technical work of our good friend Larry Amernick, who sees speculative value in two NYSE-listed shipping stocks:  K-sea Transport Partners (KSP) and International Shipholding Corp. (ISH).  Larry has spent six years developing a sophisticated array of forecasting tools that have been remarkably prescient lately. He sees K-Sea as an arbitrage against oil prices, and International Shipping as a good bet to outperform its sector. We offer his analysis of both of these stocks as counterpoint to our usual glum view of shares in general. These are timely "buy" recommendations, and we'll let Larry, publisher of the  weekly Amernick Market Report (click here for a free sample), tell you why. Here is the report that he mailed out to subscribers Thursday night: "During the past few weeks, many in the financial media pointed to the strength in the Baltic Dry Index (BDI) as a reason to turn bullish on equities. It is true that the Transportation Sector is a leading indicator and early bull market leader. If the market was reversing its long-term and secular downtrend, then the shipping sector should be one of the leading groups. More Tankers "One of the leading experts of this industry is Trevor Jones, an economics professor at South Africa's KwaZulu-Natal University. According to Dr. Jones' latest research, the global container fleet will increase by 49%, the global tanker fleet will increase by 44%, and the dry bulk fleet will grow by 60% during the next few years. Jones believes that shipping rates will stay contained until the new tonnage is absorbed by the global shipping fleets while demand comes into equilibrium with growing capacity. "Australian Transport and Logistics News reports that the combined capacity of the containerships lying idle is 1.35 million TEU (twenty-foot equivalent unit). Because the news