2-18-10
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
I wish I could be really happy that we are above the S&P 1100 mark today. But, I am only happy in a very reserved way. Why? I looked at the volume today and yesterday and did not see good news. On days where the Dow and S&P advance you like to see exuberance on the part of investors. Neither day showed that. You can read in the volume numbers. Both days were advances on volume that is quite a bit lower than we are seeing on days where we are seeing the indices fall.
Here is what that is telling you. The big money, those that make a real difference in which way the market will go over the longer term (say 8-12 months) are not there on up days. But when they see sellers come in and send prices lower, they are protecting profits by unloading stock. They never know what sell off will become a full fledged sharp decline. OS, when you see low volume on an up day. It is not a good sign.
As far as the Keyline Super Chart is concerned, we are at the current resistance level for all practical purposes. If we can hold it and move above the 1110-15 level for 3-4 days, I will be much happier. After that, the real test will be at the 1140-50 area. There is a LOT of resistance there. If we can get through that one, I am almost sure we will see the Head and Shoulder formation I have told you about since last July hit its target of 1220-40. But for now, let’s just be glad for small favors. We actually did close over S&P 1100.
But, on the other side of the market, bonds again slid nearly ¾ of a point, not good action. We are only 6/32 above the Keyline now, for all practical purposes nearly on top of it. That is not good action. Again, it portends a possible near term rise in interest rates. Will need to keep a close watch here.
Well, that is about it for today. You will have to excuse me for not posting yesterday, as I had a lot on my plate and at best would have gotten it to you at noon today. So, decided to just go to this daily MUNCHIN’. Trust you will understand
Once again 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. And 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. Bond Big Guys say Greece bailout plan is not what they will support. Better listen to the Big Guys!
2. Fed Bank in Philly says it area in seeing expanded manufacturing activity. But, much for inventory.
3. Unexpectedly high weekly unemployment numbers a wet blanket. Highlights very spotty recovery.
4. Cleveland called “Most Miserable City” by Forbes magazine. Hey, wait! I used to live there!
5. U.N. climate czar quits amid many scandals in global warming arena. Was it all a hoax?? Guess!
6. Obama creates panel to study how to lower debt. Huh??? Just stop spending seems a good way!
MY TAKE: #6 I have heard of nutty commissions, but this takes the cake! Cut spending, dummy! #1 This one could give the Euro Zone real problems. The Big Bond Guys have huge power internationally. # 2/3 One section sees growth, another contraction. Not a good recipe for recovery hopes. And #4? Ahhhh you guys, give Cleveland a break! I don’t live there anymore, but family does. And I can vouch that our river doesn’t burn anymore, too!
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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