USO Analysis 9/03/08 - USO Technical Analysis Sep 3, 2008

USO Technical Analysis Stock Chart

USO gapped below the 200 day MA which is very bearish.  The USO has strong support between $87.79 - $86.64.  A close below this level and next support appears to be around $79.40.  Resistance is now the 200 day moving average at $89.16 and the $98's

POT - Potash Analysis 9/03/08 - Potash ( POT ) technical analysis Sep 3, 2008

Pot Potash Technical Analysis Stock Chart

Pot has broken down severly yesterday 9/02/08.  Potash gapped below its 200 day moving average which is very bearish.  I would expect the previous low to be tested at $157.  If this holds, you could get a solid reversal and this could be a nice long term bottom.

Pot is in a clear downtrend, all rallies should be sold, and major dips should be bought....if $157 is closed below, you could see a retest under $150 which I would buy heavily!

ABK - Ambac news 9/03/08 - ABK hot in Pre market 9/03/08t

Last night, 9/02/08, Ambac ( ABK ) came out with the following news:

Ambac Financial Group, Inc. ( ABK ) Ambac Assurance Corporation (Ambac Assurance) today announced that it has received regulatory approval from the Commissioner of Insurance of the State of Wisconsin to capitalize and reactivate Connie Lee Insurance Company (“Connie Lee”), its financial guarantee subsidiary. Connie Lee will conduct business under a new name and will focus on the U.S. municipal and global public purpose financing markets. Ambac Assurance will inject $850 million into Connie Lee which will operate as a separate corporate and legal entity within Ambac Financial Group, Inc. (Ambac). Ambac is seeking to obtain stand-alone triple-A ratings for Connie Lee, and has worked extensively with Moody’s and Standard and Poor’s towards that goal. Connie Lee expects to write new insurance policies no later than the fourth quarter of 2008.

ABK is now trading above $8 in pre market and it bumping up at that $8.11 resistance level that I spoke about weeks ago when it was in the $5's.

So now what?  Well, the next resistance level I see would be at $9.35 which is at the 200 day moving average.  Keep in mind, this will move lower each day given that horrible past 200 days.  This is your next point to watch.  If ABK would close over $8.11, use a tight stop.