The time appears right for us to download our latest tech thoughts about oil and gas direction. We’ll take a quick tech look at those two movers and give our current thoughts on recent market phenom CEL-SCI (AMEX: CVM) following.
Oily Progress

The new US Oil Fund ETF (AMEX: USO) hasn’t been around long enough for analysis–but it looks very responsive to oil’s moves so far–so we’ll use the monthly Energy Select SPDR (AMEX: XLE) chart for our discussion. Tough sledding ahead for longs, although there is still likely room on the upside. The longer the bars get, the more we approach a serious reversal. Have a look at the NASDAQ in 1999 for reference. We can see the oil price getting to $80, and that’s where we feel the volatility will kick in. $80 oil is about $64 on the XLE.
We don’t feel that the risk/reward here for strapping on a chunk of oil exposure right now as the price leaves the blue 3×3 line in the dust is very good. Might be better to wait for $80 and buy some XLE puts once that level is hit and sellers appear. Going to be a tough few months for oil as it stays front and center news wise and becomes the main topic of just about every media market discussion. We would be cautious. The elevator always stops at some point. Get off close to the $80th floor…
Give it Some Gas…
The good news is that Natural Gas stocks look very constructive for accumulation. Here’s the chart:

The weekly chart has a completed a nifty double repo. Buying NG plays on pullbacks, in our opinion, looks the right strategy in the short-term, ie–over the next few months. The AMEX Natural Gas Index (AMEX: ^XNG) is a great place to unearth strong NG plays. The best corner of the energy market in our opinion is, at the moment, found in those NG plays. The trick shot is that our strong feeling is based almost solely on the technical picture as the fundamentals change on almost a daily basis. But it’s a pretty darned good tech picture…
CEL-SCI holding well.
Bottomline: the shares look good at these levels for accumulation. Here’s the weekly chart:

Noticed that the Company is getting more mainstream press since its announcement that CEL-1000 could be an adjuvant to bird flu and also malaria vaccines. Likely part of the reason for the good performance of late.
The price is hovering around the 3/8 retracement of it recent large move. Appears the right time to get some shares as if any renewed momentum appears, it will be from this level. The shares have settled nicely as it consolidates its recent run and the weak speculators have likely been cleaned out.
As we have always said–ever since we alerted the readership to this winner in February at 52 cents, volatility is the constant companion of these shares. Volumes have continued to swell and the action is a trader’s dream. Hold a core position, trade the pops and enjoy. Activity like this doesn’t come along very often. And there’s way more to come, in our opinion.
Keep an eye on the newsletter and here on the SCBLOG for updates.
That’s it. Just a short drive-by on some relevant issues prior to the weekend.
Trade safely.