Ed Note: The above is a small excerpt from Mark Leibovit’s Daily VR Trader. The VR Gold Letter is published WEEKLY. This excerpt from 8/24/09.

STOCKS

For the session, the Dow was off 203.00 to 9509.28, the S&P 500 was off 27.23 to 1029.85, and the Nasdaq Composite was off 64.94 to 2057.48. Volume increased on the Nasdaq but dropped on the NYSE, even though it was well above average. Breadth was weak.

Yesterday I wrote ‘The Market On Edge’ due the formation of Negative Volume Reversals ™ and fall it did. Trade started with a decidedly negative tone and never improved throughout the session. The bulls were conspicuously absent and no real rally attempts were made.

I wrote that I do not like to ignore Volume Reversal T patterns (the most recent are Negative), so even though I do feel we could trade higher in the days, weeks and months ahead, we have to tighten our belts and put in stops or simply stand aside until either Positive Volume Reversals T form or its clear the uptrend has resumed by taking out recent highs. As a result, I lightened up on the long side at yesterday’s opening and went short the S&P 500 for Platinum subscribers.

From a contrarian’s viewpoint with new 401(k) funds coming to market and barring any disastrous news, we could still very well stage another rally to retest or take out highs in the weeks ahead. So far the Street has been uniformly brainwashed anticipating a broad market washout. Until we break the rising upward channel in the S&P around 1005-1010 level on volume, I am still giving the ‘bull market’ the benefit of the doubt. My work still has unfulfilled upside potential to first 10,300-10,500 and possibly to 11,300 looking out several months.

That said, I reminded you there is an old expression that goes ‘when in doubt, stay out’.

All nine sectors fell yesterday with Financials (XLF -4.42%) and Materials (XLB -3.91%) leading the decline. Defensive sectors (XLP -0.90%, XLV -1.70%, XLU -1.43%) were down the least, though they too performed quite poorly.

Homebuilders (XHB -4.26%) and real estate (IYR -4.24%) also got clobbered as former leaders continue to struggle.

The flow away from risk was apparent as small caps (-3.4%), mid caps (-3.06%), and the Nasdaq 100 (-3.06%) fared the worst among the indices. Support at the 20 day moving averages and the lows from Wednesday and last Friday crumbled and now the indices are taking aim at their respective 50 day moving averages.

Today’s jobs report could be a market mover, and we will see if it is taken as positive or negative. Since so much good news has been baked into this market, the real market moving potential may be to the downside. Considering this is October, one certainly has to be worried about the market. We will know soon enough, as today will be interesting to say the least.

All nine sectors fell yesterday with Financials (XLF -4.42%) and Materials (XLB -3.91%) leading the decline. Defensive sectors (XLP -0.90%, XLV -1.70%, XLU -1.43%) were down the least, though they too performed quite poorly.

Homebuilders (XHB -4.26%) and real estate (IYR -4.24%) also got clobbered as former leaders continue to struggle.

The flow away from risk was apparent as small caps (-3.4%), mid caps (-3.06%), and the Nasdaq 100 (-3.06%) fared the worst among the indices. Support at the 20 day moving averages and the lows from Wednesday and last Friday crumbled and now the indices are taking aim at their respective 50 day moving averages.

Today’s jobs report could be a market mover, and we will see if it is taken as positive or negative. Since so much good news has been baked into this market, the real market moving potential may be to the downside. Considering this is October, one certainly has to be worried about the market. We will know soon enough, as today will be interesting to say the least.

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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The VR Gold Letter is available to Platinum subscribers for only an additional $20 per month, while for Silver subscribers the price is only an additional $70.00 per month. Prices are going up very shortl, so act now! Separately, the VR Gold Letter retails for $1500 a year! The VR Gold Letter is published WEEKLY. It is 10 to 16 pages jam-packed with commentary and charts. Please call or email us right away. Tel: 928-282-1275. Email: mark.vrtrader@gmail.com .

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!
For a trial Subscription of The VR Silver Newsletter covering Stocks, Bonds, Gold, US Dollar, Oil CLICK HERE