
Though I am a long-term bull, Gold is signaling a potential move to 1000 or less and I am awaiting a clear buy signal to jump back into this market.
Ed Note: Below is a small excerpt from Mark Leibovit’s with a trading recommendation from the VRPlatinum Newsletter Letter.
GOLD and METALS – ACTION ALERT –
Though I am a long-term bull, Gold is signaling a potential move to 1000 or less and I am awaiting a clear buy signal to jump back into this market.
Precious metals fell sharply on Friday, especially platinum and palladium though gold recovered to close with just a small loss, as inflation concerns disappeared amid worries that the economy is weakening and as traders worried about demand, especially with commercial bank trading is under attack. Gold fell 1.60 to 1099.40, but traded as low as 1080.90. Silver fell 0.40 to 16.97. The effects of the new Platinum and Palladium ETFs have worn off. Platinum dropped 49 to 1547 and palladium declined 18 to 431.
Copper bounced back after hitting a new one-month low of 3.2670, settling up 0.0520 at 3.3470.
As I wrote last week, President Barack Obama’s proposed tougher bank regulations may result in less money flowing into commodities markets. This is hurting both metals and energy. Regardless, it is only temporary.
Special offer from Mark Leibovit for Money Talks only: The intense analysis of Gold in the 10-12 page The VR Gold Letter is right now 75% off for the first month or $29.95 (regularly $125.00 a month). The weekly VR Gold Letter focuses on Gold and Gold shares.Go HERE and use the Money Talks promo code CBC12210
STOCKS – ACTION ALERT –
Above I wrote: “A Rally First, But We’re Entering a Bear Market Year!” We’re clearly in a first-quarter correction, but, frankly, it came earlier than I expected. Normally, we would see the lows around mid-March. Perhaps this time cycles will invert, but we won’t know until we get there. Unless you’re inclined to play inverse ETFs or short, I told you in recent days that the best place was to be was in cash.
The Dow Industrials could very well decline another 1000 points from here (or more later), so you should be looking for entry points to play for a further short-term decline. Tuesday, is a potential ‘Turnaround Tuesday’, so the current downleg may hit a wall then, however, until we get a clear sign of a bottoming process, let’s be patient.
The stock market got crushed on Friday, falling for the third consecutive day, after earnings reports came in mixed, with GE and McDonald’s exceeding expectations, but Google, American Express, and Capital One disappointing. Misguided political proposals are also weighing on the market. The bulls tried to lift the market before noon on Friday, but the bears won out and the stock market finished at the lows of the day. The Dow fell 216.90 or 2.09% to 10,172.98. The S&P lost 24.72 or 2.21% to 1091.76. The NASDAQ declined 60.41 or 2.67% to 2205.29.
Weighing on the market Friday was news that the Democrats may not have the votes to reconfirm Ben Bernanke as Federal Reserve Chairman. While I certainly support non-confirmation of Bernanke and favor complete elimination of the Fed, as you already know, there is no denying that these things would be bad for the stock market in the short term.
The market also remained under pressure by Thursday’s announcement from President Obama of plans to limiting the amount of risk large banks could take, thus prohibiting commercial banks from trading. Financials (XLF) fell another 3.26% Friday after declining 2.85% on Thursday. Financials were also weak after disappointing earnings from American Express and Capital One (see earnings section below).
Technology (XLK -3.48%) was the biggest loser on Friday after disappointing earnings from Google and AMD (again, see earnings section below).
All the major market indexes are now below their 50-day moving averages. Only the small and mid cap indexes (Russell 2000, S&P 600, and S&P 400) are above that key level. Eight of the nine market sectors are trading below their 50-day moving averages.
Earnings have been strong so far this season. Revenues have been as well, though not as strong. At Thursday’s close, 70 of the companies in the S&P 500 Index had reported fourth-quarter results, with 79% beating expectations for the bottom line, 3% matching and 19% falling under consensus forecasts. The 79% figure is unusually high, compared with the 15-year average of 61% of S&P 500 companies topping expectations. If that 79% holds through to the end of the reporting season, it would tie the record-high percentage tallied in the third quarter. Of the 69 companies that reported revenue numbers, 65% topped expectations; none matched and 35% offered results that came in below estimates. As a result, it is aforementioned politics that is hurting the stock market.
Mark Leibovit’s forecast at the World Outlook Conference Jan 22, 23rd available HERE.
The weekly VR Gold Letter focuses on Gold and Gold shares. The letter is available to Platinum subscribers for only an additional $50 per month and to Silver subscribers for only $70 per month. Email me at mark.vrtrader@gmail.com.
Special offer from Mark Leibovit for Money Talks only: The intense analysis of Gold in the 10-12 page The VR Gold Letter is right now 75% off for the first month or $29.95 (regularly $125.00 a month). Go HERE and use the Money Talks promo code CBC12210
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
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 .