2-16-10
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
Was a nice rally today, but it is still a long way from getting us out of the woods, as my charts see it. Just to get the possibility of renewing the rally started almost a year ago we need to close and hold above the S&P 1100 level for 3-4 days. Then, we need to see volume pick up as the S&P and Dow rally. Low volume on a rising market is very bad news. It is even worse when volume increases on days when we are down in the S&P and Dow. It indicates that the Big Guys are selling into strength. So, as I see it we still have a lot of work ahead of us.
Bonds are not much concerned about the current markets activity, having pretty much decided that the stock market is in a trading range and doesn’t know itself what the next major direction is. And all the Gold had to do was see the Dollar tank and it was off to the races. Gold broke up through its current resistance and is aiming at the next level at about $1,140-50. Not much of a vote of confidence for the dollar. Copper rose as inflation worries again were the order of the day for commodity traders. And Crude Oil just saw the rally as a good reason to get to higher prices, hoping that as the economy picks up it will do so while it pays higher oil prices.
So, the Bottom Line today was traders are hoping that the future holds more good earnings news and that the consumer will come back with a vengeance. Me, too. Will it? Well, that is what the next week or two may tell us, at least I hope so. Get antsy working a trading range all the time. But patience is a virtue, so I will just wait until the charts tell me more.
Repeating the mantra for this month — keep the powder dry, the eyes peeled on the stops, and a supply of possible Buys fresh in the hopper. Do hope your trading day was profitable and 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. President announces plans for new nuclear plant. Should be on line in 2022 or so. Good job!?!
2. Barclay’s Bank reports good profits. Market jumps. What happened to Greece? Nothing. Hummm.
3. Sen. Bayh will not run. Is there something in that decision that spells big trouble for us? Maybe.
4. Dollar falls and EVERYTHING ELSE RALLIES!! What’s wrong with this picture?
5. Buffett cuts stakes in U.S. energy inv. What does he know we don’t? Look like trouble for us to me.
6. China to cut off foreign investments in favor of “Buy China” policy. That was the plan all along!!
MY TAKE: #6 is what the Chinese had planned all the time. They care little for outsiders, except for what they can get from them for them elves, like nearly a trillion invested in plants and secret manufacturing processes from the U.S. Hummmmm. #3 may spell real trouble in the next election. Who will co-opt the grass roots movements for themselves this time, leaving Middle America out in the cold once again? #5 could spell real trouble for us unless we can get the U.S. environmental foot off the oxygen tube. They want control of your life by controlling your energy. Not good.
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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About BawldGuy
Good morning, Max.
You are up early!
To me that is a very good sign. Keeping the “early Bird” watch on the markets.