Can I fade LEDs while using SN74HC595N shift register?

The tutorial im trying to follow and learn off of the OE pin is grounded on my main 74HC595 that is daisy chained to another. The tutorial is only using the clock, data, and latch pin connected from the arduino. would I have to connect a PWM pin from the arduino to the OE pin and the just send a fade signal through that to the chip while having the other pins from the arduino still connected and doing all the work on data, latch, and clock?
What im trying to do is fade one led on the hold it at full brightness then fade in the other and hold it and so on all the way to the end.

Tutorial is the one off the arduino site here: http://arduino.cc/en/tutorial/ShiftOut

Sorry if this sound stupid just really new to all this