"Our thesis remains that we are in a bull market for energy," says John Bollinger in his Capital Growth Report, who notes that his long term strategy is to acquire energy assets on pullbacks.

He explains, "Though we may be near or at capacity production in oil, new supplies of industrial commodities will continue to come on line. The critical dimension is demand, which is strong and growing."

As a leading technician, he points out, "At its heart, technical analysis is but a way of quantifying supply and demand and here as in many other markets, demand has outstripped supply as is clearly evident on the charts.

In his view, he states, the demand curve for energy has crossed up through the supply curve - supporting a bull market. For investors, he suggests that the assets to buy now to invest in this trend can be any of the many energy ETFs, big international oil companies, exploration and drilling outfits, and natural gas stocks.

In addition, while he admits it is "politically incorrect," he also believes this is the time to invest in coal.

Continue reading Bollinger bets on a six-pack of coal stocks

Bollinger bets on a six-pack of coal stocks originally appeared on BloggingStocks on Mon, 16 Jul 2007 08:33:00 EST. Please see our terms for use of feeds.

same situation here...too much summary/too little analysis

In his Swing Trader portfolio, Melvin Pasternak looks for technically strong short-term trades. Among his latest "long" ideas is Peabody Energy (NYSE: BTU), which explores for and mines coal and develops technologies to convert coal to fuels such as natural gas.

Pasternak bases his recommendations on rather sophisticated technical indicators such as doji candle formations, relative strength, Bollinger bands and MACD.

For those unfamiliar with these terms, one can simply note that he considers the stock both fundamentally favorable, and technically poised to move higher. He explains, "BTU has had a great run, going from near $10 a share in early 2004 to the mid-$70s in 2006. From there, BTU pulled back substantially, reaching a low of $32.81 in September 2006 before rebounding.

For the more technically-inclined, he says, "For the past several months, BTU has consolidated, establishing what appears to be a stage I base. In the last several weeks, the shares have broken out above their 30-week moving average (which is again beginning to slope upward), signaling the possible beginning of a stage II advance.

"Despite forming a doji candle, the candle remained outside the upper Bollinger band, which is a continuation signal. The relative strength line has broken a prolonged downtrend and is back above its own moving average for the first time since the summer of 2006.

"BTU has formed an ascending triangle with resistance at $50. Just above that, there is additional resistance at $52.75. ADX is on a buy signal and MACD is bullishly trading up through the zero line. My target on Peabody is $64.95 with a stop loss at $41.89."

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

BTU: Technician lights up Peabody originally appeared on BloggingStocks on Thu, 17 May 2007 16:30:00 EST. Please see our terms for use of feeds.