This Excerpt from Mark Leibovit’s VR Silver Newsletter covering Stocks, Bonds, Gold, US Dollar, Oil CLICK HERE
The stock market settled into a trading range yesterday morning following mixed earnings reports, but then fell sharply after Federal Reserve Chairman Ben Bernanke told Congress the U.S. economy is “unusually uncertain.” The Dow fell 109.43 to 10120.53, the S&P dropped 13.89 to 1069.59, and the NASDAQ declined 35.16 to 2187.33. Breadth was negative and volume rose.
Looking at the charts, the S&P was again repelled by the 50 day moving average. Though this market has staged some nice rallies, it has shown a complete inability to break through resistance. At the same time the S&P 500 remains in a braod 1010-1100 trading range and despite my bearish bias, it could theoreitcally go either way.
I remain bearish, but, as you know, have been seeking opportunities to purchase inverse ETFs on rallies. I’ve been a little too cautious short-term because of the possibility of a July/August rally. The market could just as easily nosedive and ignore that cyclic possibility. The ‘safe’ strategy is to remain in cash until we get to 8900 in the Dow Industrials and S&P 500 950 and see if the market can form a more meaningful bottom. If that occurs, I think we would see that result in the fall. Meanwhile, I have no idea what the market is going to do in 2011-2012 and beyond, despite the Mayan warnings. My timeframe is 3 to 6 months at best and I’m grateful if I can succeed there! Market manipulation has never been greater and we have constantly watch our back. With the Dow Industrials swinging in 500 to 1000 points ranges several times since the end of April, I don’t how you can draw any other conclusion. It’s a trader’s market. Period.
Gold was weaker yesterday as the deflation theme continued to gain traction with Fed Chairman Bernanke’s cautious remarks regarding the economy. Gold was off 6.20 at 1186. Silver was off .02 at 17.68, platinum was off 2 at 1513, and palladium was off 5 at 446.
Until volume improves and/or we take out the resistance levels I’ve written about, I’m assuming Gold will trend lower, BUT, WITHIN THE CONTEXT OF ITS HUGE 20-YEAR UP CYCLE.
Marks VRTrader Silver Newletter covers Stock, TSE Stocks, Bonds, Gold, Base Metals, Uranium, Oil and the US Dollar.
More kudos – Mark Leibovit was named the #1 Intermediate Market Timer for the 10 year period ending in 2007; the #1 Intermediate Market Timer for the 3 year period ending in 2007; the #1 Intermediate Market Timer for the 8 year period ending in 2007; and the #8 Intermediate Market Timer for the 5 year period ending in 2007. NO OTHER ANALYST SURVEYED APPEARED IN ALL FOUR CATEGORIES FOR INTERMEDIATE MARKET TIMING AS PUBLISHED IN TIMER DIGEST JANUARY 28, 2008!
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