CAT made a new 27-month weekly closing high on Friday and did close on the highs of the week, suggesting further upside is likely to be seen this week. Nonetheless, the stock is not likely to go very far to the upside as intra-week resistance of consequence is found at 112.65 and on a weekly closing basis at 110.41, meaning that the stock may see further upside of anywhere from $1 to $3. Keeping in mind that the indexes are likely to get into a consolidation phase until the earnings quarter begins, it would mean the stock will probably do the same and get into a trading range for the next couple of weeks between $102 (minor to decent intra-week support) and $112. As such, the stock can be traded within this area with short positions instituted near the $112 level and long positions around the $102 level.

CVX made a new all-time high this past week, getting above the previous all-time high at 127.93. The stock spiked up and closed on the highs of the week, suggesting further upside and perhaps of consequence will be seen this week. With no resistance above and the conflict in Iraq continuing, there is no way to predict the upside objective of this rally. By the same token, the rally could come to an abrupt end if any resolution to the conflict is found, suggesting the stock is not a good trading vehicle at this time.

DD generated a reversal week, having made a new 4-week low but then closing in the green and on the highs of the week, suggesting further upside above last week's high at 68.51 will be seen this week. Resistance is found at 68.72 that if broken would likely cause the all-time high at 69.70 to be tested. With the indexes likely to remain supported but not necessarily appreciating all that much, it is probable the stock will trade between the $70 demilitarized zone (69.70-70.30) to the upside and 67.84-68.00 on the downside. With the stock closing on Friday at 68.43 and the positions still being in a slight profit, it makes sense to cover the shorts on any weakness seen on Monday.

ELON technically generated a positive reversal day on Friday, having made a new 3-day low and then closing in the green and on the highs of the day. What makes this reversal a bit more important is that the stock will end up showing a successful retest of the recent low at 2.39 if the bulls are able to get the stock above Friday's high at 2.48 on Monday. In addition, if the bulls are able to get the stock above last week's high at 2.54, a double low will also be built on the weekly chart. With the indexes seemingly evading the threat of a strong correction with this week's action, causing buying interest to be seen in recently oversold stocks, it is possible and maybe even likely that ELON will start receiving some extra buying interest at this time. Key resistance continues to be found at the 200-day MA, currently at 2.57. A close above that level, will likely stimulate enough buying interest to take the stock back up to at least the 2.90 level.

FCEL gave a minor buy signal on the weekly closing chart, closing above the most recent high weekly close at 2.34, as well as above a strong previous high weekly close from December 2010 at 2.31. Nonetheless, the bulls fell a bit short of confirming the buy signal as the stock closed below the April high weekly close at 2.45 (closed at 2.43). The action suggests the stock may do a bit more sideways trading this week between 2.21 and 2.63, possibly generating a weekly close next Friday between 2.29 and 2.31 before the bulls attempt a full rally. Nonetheless, the action is positive and the probabilities have now increased that the stock is heading ultimately higher with 3.53 as the objective to be reached over the next 4-8 weeks.

GIGM continues to languish as the Chinese market has not participated with the U.S. Market rally. The stock got down to the strong support at 1.00 for the third time in the last 8 weeks, suggesting that the door is now open for the $1 level to break as multiple lows are now found at that price. By the same token, The 1.00 level remains strong long-term support and though an intra-week break could be seen, it is unlikely any new selling will occur. In addition, the fact the U.S. market may not get the seasonal correction that was anticipated to happen, could mean the Chinese market will begin to participate to the upside and if that happens, the stock could recover. A break below 1.00 will likely put the stock back into the kind of sideways trading range that was seen in November-January between .94 and 1.05. Failure to break below 1.00 and in conjunction with a rally above 1.12 will turn the tide a bit to the bulls. Probabilities favor the bears.

LINE generated another green weekly close, the 4th in a row, and did close in the upper half of the week's trading range, suggesting further upside above last week's high at 31.50 will be seen this week. By the same token, this stock was under strong selling pressure 3 months ago and it is unlikely that a lot of new buying interest will be seen, meaning that the stock is likely to trade sideways for the next few weeks though probably with a slight upward bias since no resistance of consequence is found until the $33 level is reached. The stock did close on the lows of the day on Friday and the first course of action is likely to be to the downside on Monday. Support is found at 30.57 and then at the 200-day MA, which is currently at the bottom of the $30 demilitarized zone. Resistance is also found at the gap area between 32.40 and 32.76 that is likely to be closed at some point as the stock is likely to be in a trading range for the next few months between $30 and $33. As such, I do plan on covering the shorts this week, likely on Monday, on any dip below the $31 level.

MELI had a strong week in which the stock was able to break above a minor to decent intra-week resistance level at 90.51and close above the 200-week MA, currently at 87.80, something the stock had been unable to do for the past 7 weeks. The stock closed on the highs of the week and further upside above last week's high at 91.53 is likely to be seen. Some decent intra-week resistance is found between 92.67 and 93.84 but if broken it is mostly open air to the upgrade objective of $104. Probabilities now favor the bulls.

OXY generated the 5th green weekly close in a row and having closed on the highs of the week further upside above last week's high at 104.14 is likely to be seen. The stock has been rallying mostly on the Iraq oil crisis and as long as that continues the stock will be supported. Nonetheless, there is decent to perhaps strong resistance at 106.68 that would likely require the crisis in Iraq to escalate to new highs with perhaps even for some oil fields being destroyed. As such, the probabilities still favor the bears surviving this recent onslaught. It does seem likely that the stock will get up to the 105.63 level which might be a level where adding some shorts can be considered. No support of consequence is found until the $97-$98 level is reached.

SINA continues to languish, mostly because the Chinese Stock Market remains under sell pressure. The bulls were unsuccessful this week and the stock closed near the lows of the week, suggesting further downside below last week's low at 44.57 will be seen. By the same token, it is also unlikely that the Chinese market will go lower as long as the U.S. market stays firm, suggesting that the outlook for the stock is either a sideways trend or a small recovery period after another successful retest of the lows. Support is found at 43.40 and at the low seen in May at 42.40. Resistance is found at 47.27 and a bit stronger at 47.77. Probabilities favor at 44.50-46.50 trading range this coming week.

WDC did not participate in the index rally this past week, having generated and inside week and a red weekly close. The stock closed in the lower half of the week's trading range and further downside below last week's low at 90.44 is likely to be seen. The probabilities favor some additional sideways trading this week but with a slight downward bias. Possible and perhaps even probable trading range for the week could be 89.70 to 92.75. Based on the fact that the probabilities are not high that a correction of consequence will occur in the index market, any drop down to the $90 demilitarized zone should be considered as an opportunity to take profits on the short positions.