Intel Chart

Looks like INTC might try to break out above resistance at 16.50.

(See attached file: intc 6-30-09.PNG)

Harris & Harris Investment Club

I started an "Investment Club" with my Granddad in January of 2007. We each contributed a 50% stake in the "Club". We decided to dissolve the Club back in February.

I decided to plot the Club's equity curve versus the S&P 500 to get a feel for how we did. From start to finish we made 15%, whereas the S&P lost 45%. I went to all cash in July 2008, which saved us a lot of pain.

CHART EXPLOSION!

With everyone and their brother calling a market bottom (tonight Cramer announced "The Depression Is Over"), it's a good time to take a look at some charts. In the S&P 500, we're up about 25% from the 666 low set on March 6. That being said, I'm hesitant to throw money in at these levels - ideally I'd like a pullback. I think a pullback to 750 could still be in the cards. However, I'm also afraid the market will continue higher as people chase it up. I think if you start getting long up here, you ought to be able to stomach a visit back down to 750.

First: Stocks that have broken out of downtrends. These are looking good to me. I may be starting positions in some of these soon.

RIO trading above the 50DMA, has formed a nice uptrend since the November low:



GOOG also above the 50DMA. Just broke through a downtrend line last week.



FLS popping higher out of a tightening triangle:

CSX, "Chessie", breaks through:

AAPL broke trough resistance at $103, retested, and is now powering higher. I tried to pick some up around $112 today but it ran away on me. I think it has $120 written all over it.

Next, charts that aren't quite there yet. They are flirting with a breakout but haven't sealed the deal yet.

GE, still toying with the 50DMA and not quite above the downtrend.

FLR, solid support at $30, but still trending lower.

CHK, in a pretty tight channel.

BA, still trending lower and fighting with the 50DMA.

ADM, can't seem to overcome $29.

Financials Have Bottomed, Episode 1

Calling market bottoms is a fool's game, but what the hell, I can't help myself. The key to calling bottoms is persistence: even if you're proven wrong time and time again, just keep spouting off "we've bottomed" and eventually you'll be right! Thus begins my first installment of a series I like to call "Financials Have Bottomed".

With Madoff in jail, his accountant on the way, and Congress finally putting the smack down on AIG (if you can call clawing back 163 million from a total of 173 billion a "smack down"), we're finally getting some vengeance. I think vengeance is a key step toward market recovery. Now all we need is Samuel L. Jackson in Congress.

Take a look at the charts. It looks like a lot of these financial names are breaking out of the downtrends. Most are now trading above the 50DMA - and this hasn't happened since last September.

MA:

BAC:

GS:

JPM:

XLF:

V:

Archer Daniels Midland (ADM) Showing Strength

This chart looks bullish. ADM broke out of a downtrend channel, found support at the 50DMA, broke through resistance, and now appears to be heading higher. This is impressive considering the action in the overall market. I'm going to put this one on my watchlist, and may try to take a stab at an entry.