CHK

[Melf Elf]

cumulina,

Well, Trading Buddy, CHK is treating us very-y shabbily!   

I nearly was stopped out yesterday (below 30.87).   

[There's another little gap at 31.66 - 31.69 from April 17 that might need to get filled here.

Okay, all of the gaps are filled now.

Below that gap, we've got the "prior low" at 30.87 on March 31 (the pattern in brown) and the 50/200DMAs, which all come in right there at that price.

Okay, we tested the 50/200DMAs yesterday, and bounced higher off those on a bullish-looking Doji Star Hammer. 

If all of that support gets broken to the downside by much more tat a tick or two intraday, I don't want it.   After the breakout of the Symmetrical Triangle, all of that support "should" hold.

It almost didn't hold yesterday (we need a face on the toolbar that is sweating profusely  )

CHK doesn't know how to behave properly, technically:

1. The "false breakout" in February.  Broke out, then tanked.    

2.  The "sloppy breakout" in late March.     

3.  The breakout on April 18, that has us back inside the pattern.    

4. Yesterday's break of the up trendline of the St. Valentine's Day low, that had FOUR hits to it (1..2...3...4 in circled in blue).    

You see why I'm not a happy camper, Trading Buddy?    

Enough!  Gaps are filled.  Moving Averages are re-tested.  RALLY TIME, dang it!

Anything more than a tick or three below 30.87, I can't justify remaining long, and I'll sell.  With earnings due out next week, I also might sell into a rally here, or at least sell half. 

I have to ponder.      

Good luck to us, Trading Buddy.   

[cumulina]

 

I hope you are wiping the sweat off your forehead, trading-buddy!

We seem to be doing OK today with CHK.

I just got home from work (it's 17:35 here... ) and haven't had time to check any news, but there are bound to be some, as CHK doesn't usually go up +2% just like that.

We'll hopefully be in THE GREEN soon.



Cheers.

[Melf Elf]

I just got home from work (it's 17:35 here... ) and haven't had time to check any news, but there are bound to be some, as CHK doesn't usually go up +2% just like that.

cumulina,

Oil is up over $1.00.  Something to do with humans wanting to kill each other over it.  We elves don't go in for that sort of thing, so I can't give you any details.  Imagine actually killing someone over oil!   That's ridiculous.

Sex?  Yes. Oil, no.

We'll hopefully be in THE GREEN soon.

I hope so, Trading Buddy.  If CHK can rally twelve cents more, I'll be break even. 

[cumulina]

Hmmmm...silly people! 

I'm old enough to have had flowers paintet on my face, and I really like the saying:

"Make love, not war!"

...when will they ever learn...?

[[D] Investor]

Speaking of oil, check this out: http://www.knife-party.net/wmv/barry.wmv

Are we investors just perpetuating the system? 

[Melf Elf]

cumulina,

Earnings look good, Trading Buddy!  Hopefully, this will get us back above the Symmetrical Triangle breakout, and headed toward the upside targets.

Chesapeake earnings soar on record production

By Jasmina Kelemen, MarketWatch
Last Update: 6:45 PM ET May 1, 2006


HOUSTON (MarketWatch) -- Chesapeake Energy Corp. said after the closing bell Monday that its net earnings jumped as oil and gas production set a record for the 19th consecutive quarter.
The Oklahoma City-based producer earned $624 million, or $1.44 per share, versus $125 million, or 36 cents per share, in the first quarter of 2005.
Excluding special items, Chesapeake (CHK : Chesapeake Energy Corporation
News , chart, profile, more
Last: 32.07+0.39+1.23%

CHK 32.07, +0.39, +1.2%) earned $444 million, or $1.07 per share, versus 56 cents in the year-ago period. Revenue came in at $1.95 billion compared with $783 million a year ago.

Analysts polled by Thomson First Call expected earnings of 98 cents a share and revenue of $1.5 billion.

[cumulina]

Hi, Melf Elf.

I must say that I'm a bit surprised at the lukewarm reception from the market of an exceptionelly good (at least it seems so to me) earnings report.

I was looking at the A.H. trading yesterday and was hoping for something bigger today. But maybe it's just as well that it moves up slowly and steadily.
I'll just hang on for the long term here.

I'm in the lucky situation to also own some ADM, who also came out with good news. (Some of the ethanol-craze rubbed of on that one, I think?) and ADM is up about 8% today. Not bad for an old lady, huh? (ADM, I mean... )

Cheers.

P.s. Keep an eye on FPP too, notice the float of that one. It gives me some excitement in my life...

[Melf Elf]

I must say that I'm a bit surprised at the lukewarm reception from the market of an exceptionelly good (at least it seems so to me) earnings report.

cumulina,

I thought that the reaction would be better, too.  We left a gap at 32.45 at the open, but that got filled almost to the penny (32.47), and we're now making new highs on the day, so that's good.  I'd like to see CHK hold most of today's gains at the close.

I'm in the lucky situation to also own some ADM, who also came out with good news. (Some of the ethanol-craze rubbed of on that one, I think?) and ADM is up about 8% today. Not bad for an old lady, huh? (ADM, I mean... )

That's great!   

[cumulina]

A very nice day indeed! 

I'll stick with CHK for a good long time.

Cheers!




Here is what The Motley Fool has to say about CHK:

 
A Peek at Chesapeake
By Stephen D. Simpson, CFA (TMFWildWeasel)
May 2, 2006

Natural gas is one of the more controversial parts of the energy world today, and Chesapeake Energy (NYSE: CHK) is pretty much all about natural gas -- even if much of its production is hedged. I'm interested to see whether Chesapeake's operational advantages will really shine through, or whether it will simply be traded as a proxy for natural gas.

Once again, Chesapeake posted exceptional earnings growth. For the first quarter, revenue more than doubled, as did adjusted net income and adjusted EBITDA. It may be worth noting that adjusted EBITDA grew the slowest of the three, suggesting that rising costs remain a factor.

Production remained exemplary. Chesapeake boosted its daily production by more than 31% over last year's level, with much of that coming from organic production growth. The company also continued to add to its considerable natural gas reserves, logging a reserve replacement of more than 300% for the quarter, with more than 100% replacement achieved through organic drilling growth.

Operationally, it's tough to find fault with Chesapeake. It's hedged some of its production at attractive prices, and it's managed to generate appealing finding and development costs. By the same token, it remains a risky enterprise. Chesapeake carries considerable debt for its acquisitions, and the threat remains that uncontrolled expense growth could chew into operating cash flow.

This company has clearly built itself around the notion that higher natural gas prices are here to stay. If it's right, this company is built to generate a lot of cash flow in the years to come. Accordingly, I mostly consider it a leveraged play on natural gas; if gas prices remain high, Chesapeake will likely produce better returns than more conservative players like XTO Energy (NYSE: XTO), Devon (NYSE: DVN), and Apache (NYSE: APA), just to name a few. By the same token, this company made some mistakes in the past, and the stock cratered in the late '90s.

Though I don't share some investors' bullishness on natural gas, I still find Chesapeake very interesting, particularly for the long-term. Since it lacks the threats facing some of the drillers, investors who believe in long-term natural gas prices might want to take a closer look.

[Melf Elf]

A very nice day indeed! 

cumulina,

Yes, it was!  Some nice big blocks purchased at the end of the day, with CHK closing near its high.  That gets us out of the recent quagmire of patterns, trendlines and moving averages, and headed toward the targets.

Here is what The Motley Fool has to say about CHK:

Thanks for that information.  Applause.

[cumulina]

I'm not sure if I'm happy with CHK or not.

There has been yet another large (100.000) insider buy, and it's nice that the people who (I suppose...) have the knowlage of the company and the market will buy like that.

But so far I have made a whopping 0.51% on CHK.

Does anybody else have some info that I'm missing?

Or am I just too impatient?

Comparing to ADM (I know: apples and oranges!) that I bought april 25 at 37.75...now 45.25!

Oh, well...

[Melf Elf]

I'm not sure if I'm happy with CHK or not.

But so far I have made a whopping 0.51% on CHK.

cumulina,

We sure haven't been rewarded for holding through those good earnings, have we?

Or am I just too impatient?

I've been counting on YOU for patience.  I'm in serious trouble!   

Although the action has been less than thrilling, the chart looks okay.  Yesterday, the Tenkan-sen (solid green line) moved above the Kijun-Sen (solid red line) and CHK is above the Kumo (Cloud) and it's above the Symmetrical Triangle breakout, so it's "in gear" for a rally.

The Tenkan-Sen is similar to an 8-day price-related moving average
The Kijun-Sen is similar to a 22-day price-related moving average

Comparing to ADM (I know: apples and oranges!) that I bought april 25 at 37.75...now 45.25!

That's great, cumulina!  I'm glad that you're doing well with ADM.  Maybe CHK will get its act together, too.

[Melf Elf]

cumulina,

The 55/89 day RSIs came into synchronicity (readings nearly identical), then the 55RSI bounced higher as CHK took out the prior day's high (buy pivot) of 32.92.  That makes 32.93 a "buy," and CHK closed above that, at 33.06.

The last signal, as you can see on this chart, occurred on April 18, when CHK broke out of the big Symmetrical Triangle.  That signal failed, and CHK went down and filled those gaps, and bounced of the 50 and 200DMAs.

Yesterday's 34/55RSI signal still looks good though, technically.  Now we need PRICE to follow through on that nice signal, and start to make "higher highs."  A print of 33.80 would be nice, for openers.

 

[cumulina]

Hi, Melf Elf.

I guess "somebody" threw a wrench in the machinery today - right around 10:30?

Most of my stock took a nosedive just around that time.    CHK no exception.

Glad to hear that you are still holding - sort of moral support for me... 

Just got home, so I haven't had a day of hand-wringing...just a small "gasp" when I turned on the computer after the market closed.

Soooo....still patiently (somewhat) holding on to everything. Even ESLR! 

Cheers.

[Melf Elf]

I guess "somebody" threw a wrench in the machinery today - right around 10:30?

cumulina,

Not a great day today, particularly for the NASDAQ.  CHK went down into the 32.50s, but it recoverd and closed above yesterday's 32.92 "buy pivot."  It's acting like a pain in the you-know-what, though, after the chart breakout, and the good earnings.

Patience isn't my long suit.  Thanks for buddying it out with me.  Applause.