Hyper Dynamics: Confirmed Bullish Upwards Trend!

So it appears proper due diligence has paid off.....score one for Inefficient Markets Theory this pas week....as i said on my previous blog... Tuesday would be the day of the HDY price take off....12% gain that day...and its been trending upwards since..

What we are witnessing is a combination of group dynamics....shorts covering their positions...and associated longs, jumping on the train as the engine is starting at the station.

Above we can see that a new upwards bullish trend has been established and is in the process of a continuation upwards. (Blue lines indicate bullish trend lines) This does not come as much of a surprise, based of the analysis of my previous articles.

Resistance was broken at 5.16 today....i found it amusing that whether the shorts or some other market player or power broker wanted to keep a lid on that price..and failed. I witnessed many big multi-hundred thousand share sell blocks get eaten through by bullish volume. This leads me to believe that the massive 20% short postion on HDY (with 4 days left to cover) are getting desperate in finding and exit from their trade. It seems to me some major institution is trying to force HDY down to a lower price to minimize their losses.

Overall the current situation is now obviously a new bull market for HDY. Here are some other points

• $5.45 is the next resistance point...if we can pierce that by Monday- or Tuesday......it should be easy to hit $5.90-to $6.15 a share.
• This is a short squeeze in process....as the price continues to climb acceleration of PPS will increase due to the squeeze.
• Volatility will increase due to the squeeze...so expect a constant battle between intra-day long and sell positions.
• Either way this new bullish trend has a ways to go.
• Last but not least...we can expect major upwards PPS movement after the NASI announcement due any day now.

All in all the trend has been confirmed...so lets sit back and watch the direction of the trend.....but being weary of noise traders jumping aboard the train...irrational exuberance is a reality in every bull run...one must know when to properly exit the trade and take profits!!!

Hyper Dynamics (HDY): Further Bullish Breakout Confirmation.

Mechanical trading system indicators blew up today...they show further upcoming bullish trend confirmation signals after the last two medium volume volatile trading days.

In the chart above we can see three things.

• The mechanical Parabolic SAR has recently turned bullish showing a upwards trend to be beginning in process.
• The +DI line of the Directional Movement Indicator is above the -DI line right when he Parabolic SAR is suggesting a new upward trend. 
• Candle Stick's are settling at resistance points instead of breaching support points on daily charting.

When Parabolic's change direction to bullish..with a confirming Direction Movement Positive line above the Directional Movement Negative line..this almost invariably is a ironclad confirmation of a bullish breakout since possible whipsaws from the Parabolic SAR  can be ignored. Coupled with the incredibly contracted BB bands its blatantly apparent we will see a breakout any day now...most likely Monday, Tuesday or Wednesday..but probably Tuesday.

All in all, the Bullish falling wedge continuation pattern is still in effect. To be quite frank, i have not seen so many indicator's and pattern's align themselves together to basically say long this security right now...i mean this is like the planetary alignment of Technical Analyisis Indicators...its amusing...

Regardless its apprarent short sellers and market makers are holding this stock down so they can have more time to sell to cover..or accumlate more shares at a discounted price over a duration of time to avoid loosing potential spread points of massive bullish buying energy...

All in all, the time to buy is now...the breakout will most likely be fierce and fast...im expecting the move to occur next week..but never underestimate the continuation of a battle between Bull's and Bear's it can last and long time.


Position: Ultra Long

Advanced Micro Devices Revisited: Oversold & Undervalued?

Yesterday Alex Guana an analyst at JP Morgan moreless bashed AMD saying its new fusion chipsets will have no competitive advanatge towards intel, and is moreless no longer a relevant company in the semi-conductor industry. Now his comments may have some merit, but they certainly are biased. Many mainstream desk-top building fans, as well as major companies such as HP typically purchase AMD chipsets due to their performance to price ratio. AMD sells semiconductors that are slightly less powerful than intel's but half the price...in this economy value is what consumers are looking for. Regardless of the constant banter back and forth over what manufactuer is better lets take a look at what the charts have to say.

Based off of technical analysis of AMD here are some points suggesting a trend reversal.

• The latest trading day has shown the candle stick to close below the lower bollinger band..when this occurs this almost invariably should be used as a entry postion and almost always signals a buy.
• The CCI indicator is at -293..lmao...when the CCI line crosses -100 its considered very overvalued......i can honestly say i have never seen CCI approach these low levels unless there is some sort of major event or crash.
• AMD has been in a downwards trend for many weeks now, it seems to gravitating towards a more so sideways trading range..or so i predict. (illustrated with pink trendlines i inserted on the chart) So we can expect to see less volatile price movement.

Overall i think the recent price slide, is the reaction of noise traders and investors towards Alex Guana's comments, as well as the associated slide in the tech sector this week. AMD is a major company and when funds and traders liquidate positions in mutual funds, etf's, or sector based portfolios, AMD being a major tech stock will take a hit on negative volume.

Conclusion? I think AMD is reaching at, or approaching a bottom, and i believe making and entry trade now would be a profitable stratgey.........i expect to see AMD approach $7.60-$8.20 per share in the next 3 or 4 weeks.

Position: Long

Hyperdynamics Corporation: Breakout To be?

While running analysis of a variety of equities Hyperdynamics Corp. (HDY) came up on my screener. I almost invariably prefer to analyze securities that are trading sideways for a period of a week or so. Allows me to look at the previous 3 month trend to allow me to evalute which direction the trend is going.

So far it appears that HDY is a textbook depiction of a Bullish Falling wedge continuation pattern.

• Contracted Bollinger bands mean a directional breakout is due.
• Light volume preceded by falling wedge with contracted bands shows the bullish falling wedge pattern is working itself out before breaking out.

Based of the chart, and my analysis of the technicals i would give HDY a long call, it appears a bullish breakout is will occur after this contraction expands.

Position: Ultra Long