CHK Should Go Higher…. Careful Chasing…But Long Checkdowns

April 22, 2008 10:12 PM

Once CHK cleared $51.20, the trade was long. (I did mention to be long CHK on March 24th near $44, see previous posts) We have not yet seen the highs, IMO. I would rather not chase, but if it checks down, the trade should be long, unless we clear today’s high FIRST and reverse. The stock seems pricey, but I have no idea of the value of stocks in the commodity arena as it all depends on the dollar. If the “american peso” continues to plunge, then commodities will continue to rise UNTIL a worldwide recession significantly lowers demand.