2-4-10
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, not much to say about the market today except — it broke. The break down is still not totally decisive, but this is a bad day going into the employment report tomorrow. The culprit was not even the U.S. financial reports. It is the problems in Europe that I have off and on mentioned the last two weeks in the “TALK ABOUT” section below. The Euro is now falling apart as an alternative currency. You will note that the Dollar today was very strong, in fact it broke up through its Keyline. The break was not a lot, granted, but it is there. It and the bonds, gaining well over a point, are now “safe haven” buys. Not good for stable markets.
So, what now? Well, tomorrow’s employment report needs to be behind us to give me to give you a solid ruling that the market has broken and, of course, we need to close below the S&P Keyline, currently only 3-4 points below the close of the S&P cash today. To this point, nothing but a great employment report will prevent that in my opinion. I will have more on this tomorrow night. And, of course, on Monday in the Weekly Keyline Report I will have a detailed review for you.
I am repeating myself, I know, but please respect the stops I have recommended on all your stocks. If this market does break big and tests the old lows of March. It will not be good for portfolio holdings. RESPECT THE STOPS!
And as for the Head and Shoulders formation, well….. Below is the current picture of the chart as of the close tonight. It is a classic picture of a formation failure, a big failure. Was a good one while it lasted and even covered eight days in the making. But, when it broke, it really broke. So, on to the next formation.
Yes, today was not a good day for the markets if you are long. But the real test of all this will come tomorrow at 8:30am in the employment numbers. I’ll cover that for you tomorrow night.
As always, I do hope your trading day was a profitable one -– but that would be a tall order unless you were short. I 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. Euro dollar is falling apart and Euro union may be irrevocably damaged. Too soon to tell. Bad news!
2. Senate will swear in Brown tomorrow it appears. Something went right in D.C. for once.
3. Low risk perception from inflation prompts gold selling. Good opportunity to buy it, as I see it.
4. Iran’s new satellite raises fears of a nuclear rocket one day. Yeah, that is their goal. Time to worry.
5. Small Business Alliance lobbies Congress to lower credit card fees they pay. Claim they’re excessive.
6. Today, ADP reported it saw a 20k loss in jobs last week. They miss often, but investors agree this time.
MY TAKE: #6 This one was a good excuse for investors to just get out before the big number tomorrow. #4 is the next big international problem for the Administration. This time the fears are really real! #1 is the prime financial news today. Likely to be with us for some weeks. Potential default by a NATION is the fear. #3 seems to me to be offering a good opportunity to buy gold for the long term.
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
Well, not much to say about the market today except — it broke. The break down is still not totally decisive, but this is a bad day going into the employment report tomorrow.
No snark, just wanting to learn. What would have been decisive?
To me a break of the Keyline at 1060 and a further close below 1040 would be a coffin nail. So far, still above both, but not much above Keyline. Closed at 1063
Best regards
Max