2-3-10
CURRENT BUY – 100% of stock allocation $$$
KEYLINE 7-25-09 BUY 50% allocation only (S&P @ 970)
SIGNAL 10-9-09 BUY balance of 50% (S&P @ 1071)
1-25-10 SPECIAL INSTRUCTIONS ALL SUBSCRIBERS:
Establish stops on volatile stocks 12% below highest high last six months.
Use 25% stop for “Steady Eddie” stocks. Check each day to see if any close
below stop. If so, execute that exit the next day, at the open. These
instructions hold until we close above S&P 1160 (if we do).
GOLD AND THE DOLLAR
As you know I include the Gold and Dollar charts each Wednesday and the Copper and Crude Oil charts each Friday. So, today we look at Gold and Copper. The GOLD chart pretty well shows the bounce up off the support at the $1.075 support I defined several weeks ago. Also note that the green line (fast sto) in the MOMENTUM SECTION of the chart (bottom) shows that it is still only at the 30 area, leaving a lot of room for higher prices to come. And I do think that the recent pullback in Gold will now lead to a test of the $1,120-30 area or so. The real test here is the ability to see prices close over the near term resistance at about the $1,135-40 area. A close above this level would the very likely see a test of the last high area in the $1,200 area. But, not to get ahead of ourselves. I suspect that the test for higher prices will be dragged out over several weeks (about 10 trading days. Over the long term this level is a very good buying area. Short term (30-60 days) maybe let’s see if the price can break the $1,135-40 area then buy, for some short term profits.
The dollar is today really trying to cross up the Keyline at 79.49. This is about as close as I have seen it recently. But, the very high green line (fast sto) in the MOMENTUM SECTION is over 90 and even if we did cross up the Keyline, to sustain higher price movement, I would have to believe that the high sto needs to be “relieved” a bit. If you will look back at late 2005, you will see that we crossed up the Keyline then and the sto was very high. Note that the following two months the green line fell to the 20 area, BUT the price stayed above the Keyline. Yes, it eventually failed again, but this might be the scenario we see if the Dollar now cross above the Keyline. Should be very interesting.
THE BOTTOM LINE
I am adding a chart (not a Keyline) to the MUNCHIN today. It is unfolding and should be “mature come Friday, just in time for the employment report. This one is a 15 minute chart of the S&P Cash Index that I keep just for myself to help me keep a close watch on intraday trading activity.
Not a lot to say about the other indices today. You will note that the S&P head and Shoulders I spoke about yesterday did fall back to the mid-1090 area today. It will be interesting to see if falls further tomorrow or closes the day tomorrow closer to the 1103 NECKLINE. Can’t call that one easily. But, with the employment report at 8:30am Friday, I would not be surprised to see this happen. I just love this business!
Bonds have taken a licking today, down a point or so. Most of that is possibly bond traders indicating their belief that the Employment poet may turn out to be bullish, which for the bonds would be bearish, as recovery, it is believed by bond traders, will lead to higher interest rates and lower bond prices. Just a day away and we will know for sure.
So, all-in-all, it was a fairly steady day. The real bets will have to be on the table by close tomorrow, so tomorrow might be a bit more choppy. As always, I do hope your trading day was a profitable one. Will see you tomorrow, Lord willin’ and the creek don’t rise.
NEED SOMETHING TO TALK ABOUT TONIGHT?
SIX STORIES IMPACTING THE MARKET TODAY
1. Tran. Sec. Ray LaHood to Toyota owners: DON’T DRIVE!! Talk about government intervention!
2. Will Senator Elect Brown be sworn in immediately? Sen. Reid said he would move – but how fast???
3. ISM numbers were slightly better, but market has its eye on Friday’s employment report right now!!!
4. Obama urges Congress Democrats: talk to us “Regular Americans” often. What’s a Regular American?
5. Big bond dealers say no direct bids please. Creates volatility that will raise rates in end. Hummmm??
6. Wal-Mart laying off 300 headquarters staff in cost reduction move, as it restructures its organization.
MY TAKE: #6 Just a sign of the times. Profits are hard to come by everywhere. #1 is just a heavy handed interference in the private sector, one encouraged by the present Administration’s philosophy. #2 is a real potential political battle ground. Will Sen. Reid move quickly as he promised to seat Brown or not? Explosive stuff! And #4 is still a mystery to me. Am I a Regular American? What do they mean Regular? Are they not regular in D.C.?
Note: All closes at 4pm using continuous cash contract results
Disclaimer
** The top five sector stocks shown are stocks that are above their Super Chart Keyline and between $5 and $35 in price have been randomly selected from the stocks in the each sector. Their inclusion in the Report is not to be interpreted as a buy recommendation nor is the exclusion of others above their Super Chart Keyline to be interpreted as a sell recommendation. This data is given for informational and research purposes only, as we do not make buy or sell recommendations at any time under any circumstances.
?***Max Whitmore, “The Keyline Report”, and “MUNCHIN’ On the Number”report does not endorse or suggest any of the securities which are mentioned in any way in its Reports. They are provided purely for informational and research purposes only. Max Whitmore, “The Keyline Report,” and “MUNCHIN’ On the Number” do not recommend particular securities to anyone, ever, under any circumstances. The statements made herein include information obtained from sources we believe to be reliable, but no independent verification has been made and we do not guarantee its accuracy or completeness in any manner whatsoever. You should not make any investment decisions of any sort based solely on what you read in the Keyline or MUNCHIN’ Reports. The statements made herein contain general information and do not constitute an offer to buy or sell any security of any description. Subscription to any of the Reports mentioned above is consent by the subscriber of full release of Max Whitmore and the Reports mentioned herein from any claims or actions of any description, legal or otherwise, against Max Whitmore or the Reports. All material herein is Copyright 2010 by Max Whitmore. All rights reserved.
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