The OIH is setting up on multiple timeframes

The OIH (Oil Services Holders Trust) triggered daily mini inverse pups on 8/14/06. The weekly also has a mini inverse pup and monthly has a mini inverse pup tightening. We took shorts from 136.10 in the morning. The weekly 5 holds resistance at 137 which sets up a trail on 137.60 breaks for initial downside targets on monthly 15s 133.90 x 133.70 and the daily and weekly lower bollingers bands at 131.50x 129.10 respectively.

Pup patterns are when the 5 period simple moving average stalls sideways as the 15 period simple moving average continues to rise. Eventually, steam builds in the contracting trend channel to cause an explosive breakout above the 5 period moving average usually with upside targets at the upper bollinger bands. Mini pups are when the lead %d stochastics stalls on the rise as the laggard %dslow stochastics continues to rise to form a wedge like breakout. The vice versa holds true on inverted Short set ups.

Markets are coming out of earnings season so filter tightly. Good trading gang!

Jea Yu has been involved with the equities markets for over 10-years. He specializes with intraday trading in the U.S. equities and futures markets. To receive a free 7 day trial to Jea Yu's Underground Trading Pit, click here or call 888.484.8220, ext. 1.