Sorry for the tardiness — family priorities.
2-8-10
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).
THE BOTTOM LINE
Well, the first thing to take note of is that the close on the S&P cash index was below the Keyline! The S&P close was 1056.74 and the Keyline stands at 1060.69. So far, no siren or bells are going off. The close on Friday next is the important number for the S&P chart. But, the drift continues to be lower and I am now watching the black line (slow sto) in the MOMENTUM SECTION of the chart. Today it closed at 80, while the green line (fast sto) closed at 20. What I want to see is, if we continue to stumble lower, will the black line (slow sto) fall below the 65-70 area with no sign of a rally beginning. If so, could signal a much lower price level coming.
I will take today’s action as a sign that we need to continue to watch very closely. As I see the action today, this is still a pullback to test supports I can see on my daily chart. I don’t show this one to you because it I far to choppy to show you the more important longer term trend that really is what the market is all about. The weekly chart format clears up direction very much. But, I will tell you this, the very near term needs to see a resumption of the rally in the next few days or we may not be able to avoid a potential rally breaking close. As I say, too soon to call, but once again (and I don’t like to sound like a broken record) observe your stops. When one gets broken, exit right then or next morning at the open.
Bonds pretty much held their own today, again reinforcing my opinion that the Big Bond Guys are remaining pretty much on the fence for the moment. They want some sort of confirmation that this market is clearly going up or down. The key to me will be the S&P 1040 areas and a possible exit if we cross and close below the S&P 1020. But, let’s not get ahead of ourselves. For now, we hold our positions but watch the stops like hawks.
And there was nothing new at the close today for our other six indices. NASDAQ followed the S&P, and all the others held above (or in the case of Crude Oil, below their Keyline’s. So, nothing there for today.
That’s it for now. 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. Congressman John Murtha dies today at 77. One thing is sure. He left a mark on his country.
2. Iran says they are upping the stakes in the nuclear game a notch or two. Russia, U.S. and UK angry!
3. Even if Greece wanted to call for help, investors would start running. But, clearly, time is running out.
4. Treasury to sell $160 billion of notes and bonds this week. Prices sink a bit in anticipation. Hummmm.
5. Moody’s sounds alarm. U.S. AAA bond rating in trouble. If lowered, a sure-fire financial nightmare.
6. So, New Orleans Saints come marching home with a pile of Super Bowl rings! Brees was magnificent!
MY TAKE: #6 was one of the most exciting Super Bowls ever! Even the lowers, the Colts, must admit Brees made it just that. WOW! #4 is a real worry because the amount that must be rolled over in the next 4 months is staggering!!! #2 is one that threatens all civilization. Nuke sin hand of nuts is sure disaster!! Do something somebody! #5 is a ticking bomb to. Just pray the U.S. Congress soon realizes what havoc they have potentially sowed! And #1? Well, the Congress will miss a real feisty fighter. Many disliked him, but he sure said what he thought straight out, like it or not.
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.
Related posts:
About BawldGuy
Recent Comments