Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Market Master Report - Major Levels Alert!

|Includes: Halliburton Company (HAL), MON, QQQ

The PowerShares QQQ Trust, (ETF) (NASDAQ:QQQQ) lost just 0.25 cents for the week ending July 30th, 2010. Last week started higher and then faded throughout the week. On July 30th the technology heavy ETF opened sharply lower only to reverse all of the early loses and close positive on the session. Therefore, the index could see some early strength this week. The QQQQ's and the other major indexes rallied nearly 10 percent for the month of July and this is very impressive by all standards. However, the volume during this move higher has been very light which could signal lack of conviction by the institutional money. This week could go either way by the current chart pattern in place on the weekly chart. The negative for the QQQQ's are that it is still trading below the weekly 20 moving average and below the June pivot high. Both factors are signs of a weak technical positions on the chart. The weekly support level for the QQQQ's is still the $42.00 area which is the July low. The current weekly resistance area will be the $48.00 level.  

The United States Natural Gas Fund, LP (NYSE:UNG) has come back into play ever since the BP plc (ADR) (NYSE:BP) oil leak began in the Gulf of Mexico in late April. While natural gas is in abundance in the United States oil is still the primary energy source of choice. Natural gas has been promoted as the clean energy source. However, the retrieval process is known to cause many pollutants; as we have seen all deep drilling carries risk dangers to the ground and to the water systems. This past week United States Natural Gas Fund (NYSE:UNG) closed solidly above the weekly 20 moving average and this is a short term sign of strength. The weekly resistance levels for the United States Natural Gas Fund are $8.80 and $10.00. The weekly support area for the UNG will be $7.30 and $6.70.     

Potash Corp./Saskatchewan (NYSE:USA) (NYSE:POT) has now staged a four week rally continuing its winning ways in July. This move higher comes as the U.S. Dollar Index plummeted by 4.5 points in the month of July. As we all know the agriculture stocks are very inflationary in nature and often trade much like a commodity stock. Therefore, when the dollar declines sharply the agriculture stocks will often inflate higher. Monsanto Co (NYSE:MON) has staged its best rally in 2010 during the month of July as well. Therefore, it is rather obvious that the weaker dollar was the determining factor to the stronger agriculture sector this past month. Potash Corp will have minor weekly chart resistance around the $107.00 area and much stronger resistance around the $111.00 level. Should the stock reverse lower from here the weekly support area for Potash Corp is around the $92.50 level.

Halliburton Co (NYSE:HAL) has rebounded sharply higher since early June when the stock traded as low as $21.10 a share. This past week the stock traded up into the weekly 200 moving average around the $31.00 level and this served as short term resistance. The stock still looks strong on the charts in the near term, however, important resistance levels are very close. Halliburton Co will have near term daily chart resistance around the $32.00 area. Should the stock trade above that level then the weekly resistance level at $35.00 should come into play. 

Come Join The Best and
Get in-depth analysis, along with exact entries/exits, swing trades, scalp trades, even our proprietary cycle work, join our Research Center or Intra Day Stock Chat NOW and enter the ranks of the Pros!