The below is just a portion of Mark’sVRTrader. Much more analysis contained every day in Mark’sVRTrader Silver or Platinum Service
Mark Leibovit’s Special Trial Offer: Use this month to kick our tires. Pay 50% for the first 30 days (No refund) and sample our Silver or Platinum service and then decide what works best for you. If you aren’t 100% ready to move forward, simply email us to cancel one week before your 30 day 50% off trial subscription ends and it will be canceled and you will not be charged ANY FURTHER, no questions asked. Just send an email to mark.vrtrader@gmail.com or call 928-282-1275 to cancel. You will receive an emailed confirmation of your cancellation at that time.
Stocks – NEUTRAL
With the exception of the Dow Transports which posted new bear market lows on Friday, other major indexes are testing their August 9 lows, including the S&P 500 which touched 1123.53 on Friday versus the August 9 low of 1101.54. As I told you, I was very disappointed the S&P 500 only rallied to 1208.47 versus the 1230 level where I prepared to get short once again using inverse ETFs. Despite that, I see no reason why we will not see new lows in the weeks ahead. In the S&P 500 under the 1101 SPX low look for 1090, 1060, 1040 and 1030, 1015 and 1000 as all next theoretical downside targets.
A Gallup poll reveals that 71% disapprove of Obama on the Economy and 76% of Americans think it will get worse! The answer? It’s housing, stupid! For most Americans, the biggest asset they own is their homes, and after an unrelenting 5-year slide, there are still few signs of stability or recovery. Consumer confidence was shaken by the renewed -5% slide in the S&P Home Price Index from Dec ’10 through March ’11, which has further limited their access to home equity lines of credit, and led to a greater sense of loss of wealth. Many consumers have felt their wages devoured by high gasoline and food prices, and they are pinching pennies. In June, US-consumers reduced spending for the first time in 20-months. The latest drop in stock prices could also slow spending by upper-income Americans. Eighty percent of US-stocks belong to the richest 10% of Americans. And the richest 20% of Americans account for about 40% of consumer spending. Until home prices turn higher and/or the government offers homeowners the same deal given the banks – 0% interest, I do not hold much hope for the sector and for the nation. Unemployment has remained high; it’s actually about twice the official 9% level, if it was calculated the same way it was 30 years ago. The government has no choice but to keep interest rates lows because of its significant debt problem. In other words the debt is so large, paying higher interest rates could one or more trillion dollars to the deficit. Traders are rightfully concerned about Europe’s failing economy and the inability of its leaders to find a solution. There may be none. Banks may have to collapse much as we may see Bank of American collapse here in the U.S. Couldn’t happen to a nicer group of guys, I say! As I mentioned, social unrest remains a risk everywhere including the U.S. Ultimately, I also expect to see riots in this country. It’s going to get ugly. Obama is helping fuel the fires of class warfare, defending illegal aliens, and pointing fingers rather than proposing solutions. If you can afford a refuge, get one!
The chances are high that we’ve entered a bear market. Some bear markets have lasted as long as five years, i.e. 1937-1942 and 1977-1982. And, others have lasted as short as four months to six months; i.e. August to December 1987 and January to July 1984. If I’m wrong and this washout is only just another cyclical sell-off which we often see this time of year, my work would sooner or later generate broad-based Leibovit Positive Volume Reversals and we would again begin to tenaciously trade above the 200 day moving average. After all, the Plunge Protection Team is very real and so is a Presidential election next year. What kind of rabbits could they possibly pull out of their hats? Could it be a war?
Gold – BULL
Bonds – NEUTRAL
The above is just a portion of Mark’sVRTrader. Much more analysis contained every day in Mark’sVRTrader Silver or Platinum Service
Mark Leibovit’s Special Trial Offer: Use this month to kick our tires. Pay 50% for the first 30 days (No refund) and sample our Silver or Platinum service and then decide what works best for you. If you aren’t 100% ready to move forward, simply email us to cancel one week before your 30 day 50% off trial subscription ends and it will be canceled and you will not be charged ANY FURTHER, no questions asked. Just send an email to mark.vrtrader@gmail.com or call 928-282-1275 to cancel. You will receive an emailed confirmation of your cancellation at that time.