CAT failed to follow through to the upside (had an inside week) after the better than expected earnings report generated a new all-time intraweek and weekly closing high the previous week. Nonetheless, the stock did close green and near the high of the week, suggesting further upside above last week's high at 287.66 will be seen this week. If that occurs but the previous week's all-time intraweek high at 293.88 is not broken, and that is followed by a fall back the following week, a retest of the high will have occurred, meaning a retest of the breakout area at 264.54 would likely occur. Nonetheless and in looking at all the charts (including the monthly chart) and going back 5 years, it does seem that further upside up to the $307 level will occur at some point over the next 1-6 months. The fundamental picture of the company is strong and only some strong break of the index market would change it. If that happens, then a potential drop down to $244 might be seen. Simply stated and at this time, being short the stock is at best a 50-50 opportunity from the current $284 level. Having said that, a drop down to $264 is highly likely to be seen at some point, with the question being "will $307 be seen first or be seen after the drop down to $264?

DD generated an uneventful inside week but the bears were able to close the stock in the red and near the low of the week, suggesting further downside below last week's low at 75.85 will be seen this week. Nonetheless, and having said that, the bears have not yet accomplished anything as a weekly close below 75.81 is needed for at least a failure signal against the bulls to occur (stock closed on Friday at 76.32. Then again and on the daily closing chart, such a failure signal has been given and it does suggest that the stock could be heading down to the 72.36 level where daily close support is found. Any daily close above 78.08 would now be a bullish signal.

ENG reported earnings on Thursday afternoon but they had no effect on the stock whatsoever. Then again, their earnings reports for some reason are not easily viewed or known as with other stocks, as finding the report was very difficult. I could only find it at Yahoo.com. Either way, the stock did nothing on Friday whatsoever and the same parameters as have been in place for close to 3 months remain the same ($.30 is support and $.40 is resistance). The CEO of the company, who was there in the past, then left, and recently came back stated that they have cut down 50% of their costs and that they do expect that they will see positive things during the rest of the year. They were successful in getting a 6-month extension to remain in the NASDAQ, given that when a stock is trading below $1, the NASDAQ usually drops those companies. The request and granting of the extension suggests that they do expect to go back above $1 sometime over the next 6 months. The volume remained extremely low on Friday, meaning that the earnings report neither helped nor hurt the stock.

LXRX made another red weekly close (the 9th in a row) and closed near the low of the week, suggesting further downside below last week's low at 1.68 will be seen this week. This recent drop was further helped by the earnings report 2 weeks ago that was worse than expected. By the same token, the company continues to receive positive news regarding the drugs that they are working on and the outlook for the future (based on those fundamental reports) suggests that a positive outlook for the future is in place. The stock did close on Friday at a weekly close support level between 1.73 and 1.76, which stood up for 5 months back between March and August 2020. Given the fundamental picture for the future and the 9 red weeks in a row, there is a fair-to-good chance that a green close will occur this Friday. It does need to be mentioned that the stock made its all time weekly closing low on November 2020 at 1.03 and that low was successfully tested on June 2022 with a weekly closing low at 1.48. This does suggest that with the stock closing on Friday at 1.73, that the probabilities of Friday's close being the 2nd successful retest of that all-time low are high. By the same token, the recent break of a decent weekly close support at 1.91, does suggest that any recovery from here will be limited for the next few weeks. Evidently, any weekly close above 1.91 would generate a failure signal against the bears but the probabilities favor the stock moving back up to the 1.91 level and then retesting this 1.73 low thereafter. This means that any recovery of consequence is not likely to start for at least another 3-6 weeks. Once it does start though, a rally back up to the 200-week MA, currently at 3.14, is likely to occur over the following 3-6 months. Due to the outlook mentioned above, this week is likely to be important, with a green or red weekly close next Friday being a key to the chart outlook.

PAAS generated a positive reversal week, having made a new 4-week intraweek low and then closing green and on the high of the week, suggesting further upside above last week's high at 15.87 will be seen this week. This positive reversal does suggest that the stock will be in a sideways trading range between 14.67 and 16.12. With the Gold chart leaning more to the downside than to the upside and the possibilities of any further profit of consequence being low, consideration to taking profits on the trade above the $16 should be given. Any rally above 17.12 or any drop below 14.41 would give additional ammunition to the traders in the direction broken. I do plan to take profits this week above 16.00.

PLNHF did make a new 10-week intraweek low, having gone below the .534 low made in June and the repeated lows at .54 made repeatedly thereafter. Nonetheless, the new low did not generate any new selling and the stock turned around to close on the high of the week at.58, suggesting further upside above that level will be seen this week. Having said that, the stock has been trading between .52 and .63 for the past 3 months and until one of those levels gets broken, nothing of consequence is likely to happen. The company does report earnings on August 29th after the market close and as such, is likely to continue in this trading range for the next 2 weeks.

TCEHY made a new 11-week intraweek low and did close in the lower half of the week's trading range, suggesting further downside below last week's low at 41.00 will be seen this week. The stock had been trading between 41.04 and 46.46 for this period of time and that trading range was broken with the 41.00 low. Then again, the break was not confirmed as the weekly close support at 42.16 was only broken by $.03 cents, which is not considered a clear break. Nonetheless, the bears have the edge and if any further downside is seen, it will favor the bears for a retest of the pivotal support at 38.88. As such, consideration should be given to liquidating the positions if the 41.00 low made last week is broken. The chart is leaning in favor of the bears.

TNC made another new all-time intraweek high this past week but for the second week in a row, the bulls failed to confirm the breakout, having failed to do the same on the weekly closing chart. The all-time high weekly close is at 85.25 and the subsequent retest of that all-time high 10-months later was at 85.25 and with the stock closing on Friday at 84.95, neither of those two levels were broken. The stock did close in the lower half of the week's trading range, suggesting a higher probability of going below last week's low at 83.58 than going above last week's high at 87.53. If that occurs, there is absolutely no intraweek support below until 78.26 is reached. In looking at the daily closing chart, the stock did make a new all-time high daily close at 86.96 on Wednesday but did generate a failure signal on Friday, meaning that both charts suggest that the rally high has been made and that the stock will head lower from here on in. Nonetheless, the stock does have a breakaway/runaway gap formation with the runaway gap being at 81.47. The gap formation is valid as it came off of news (better than expected earnings report) and as such, the bears will have trouble closing the gap. A drop down to the top of the gap at 82.86 is likely to occur this week but at that time, the traders will make their decision on what to do thereafter with the stock. I would venture to "guess" that due to the failure on the daily and weekly closing charts, that ultimately (likely in September) that both gaps will be closed (meaning a drop down to at least 74.25) and that at time, covering of the shorts should occur.

TOL generated a new 3-week intraweek high but then closed near the low of the week, suggesting further downside below last week's low at 78.75 will be seen this week. If that occurs, the all-time intraweek high at 83.72 will have been tested successfully and some further downside to test the previous daily and weekly closing high at 74.61 will occur. The probabilities do favor this scenario. By the same token and at this time, further downside below 74.41 (on a closing basis) is not a probability given the positive fundamental picture on the Housing market. As such, any drop below $75 should be considered as an opportunity to cover the short positions and take the loss.

VET made a 7-month intraweek and weekly closing high and closed in the upper half of the week's trading range, suggesting further upside above last week's high at 15.45 is expected to be seen this week. The stock did confirm the breakout that occurred the previous week, with a 2nd week in a row closing above the 4-month weekly closing high at 13.47. In addition it broke 2 other weekly closing resistance levels (minor in nature) at 14.13 and at 14.78, having closed on Friday at 14.79. There is still minor weekly close resistance between 15.72 and 15.84, which is a level that should be reached this week. If the stock closes above those level on Friday, a rally up to the objective of the mention at 17.97 is likely to be seen within the next few weeks. Nonetheless, the probabilities do not favor a straight up or fast attempt to get to the objective will occur, meaning that it is likely that to take anywhere from 4 to as much as 8 weeks to get there. That means up and down movement, with a slight bias to the upside, being the scenario. For the time being, important and indicative support, on a daily closing basis, will be found between 13.95 and 14.04. The stock is up at the 200-day MA, currently at 14.79, meaning that this week is short-term important. Any confirmed daily close above 15.00 will give the bulls the needed "short-term" ammunition to continue higher in the short term. Probabilities favor the stock dropping down toward the $14 level by the end of the week.

VWDRY reported earnings and they were lower than expected. As such, the stock gapped down and made a new 9-month intraweek and weekly closing low. The stock closed on the low of the week and further downside below last week's low at 8.04 is expected to be seen this week. There is some intraweek support at 8.08 and again at 7.90 but that support is minor in nature. One potential small positive is that the stock made the week's low on Thursday and Friday was an inside day (no follow through) and that could mean the traders might try to rally the stock at the beginning of the week. A daily close above 8.80 is required to negate the earning's report drop. Otherwise, there is no support below 7.90 until the 7.00 level is reached. I will be looking to liquidate the positions and take the loss if the the stock rallies above 8.60.

ZLAB reported earnings and they were worse than expected. Nonetheless, the traders were not looking for an earning beat but looking for the guidance-for-the-future estimates and the guidance given did leave the door open for a recovery rally. The stock did make a new 9-month intraweek low at 23.77 but then rallied to close in the upper half of week's trading range, suggesting a higher probability of going above last week's high at 27.74 than below last week's low. In addition and on a positive note, the weekly close support at 25.30, which has been in place for the past 10-months, did not get broken as the stock closed at 25.78. In addition and on the daily chart, a new sell signal was given on Tuesday but then was negated the very next day. That negation has now been confirmed. Putting all this action (and the earnings report and guidance) into the evaluation, I would venture to say that the worst is over and that from here on in, a recovery rally will occur. There are 3 "daily close" resistance levels to watch this week. The first one is at 27.64. It is a minor resistance level but a close above it, would generate a 2nd failure signal against the bears. The next resistance level is at 29.04. It is a minor to decent resistance area that if broken, would give the bulls new chart ammunition. The 3rd daily close resistance is at 29.81, which would give the bulls a clear edge for more. Any weekly close above 31.49 would generate a new buy signal and confirm that the downtrend is over. Daily close support is now found at 25.30, meaning that very little (if any) weakness should be seen, if the chart evaluation is correct. Simply and from the beginning of the week, the stock should be moving higher.