Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21
Covid and Democrat Blue Wave Beats Gold - 15th Jan 21
On Regime Change, Reputations, the Markets, and Gold and Silver - 15th Jan 21
US Coronavirus Pandemic Final Catastrophe 2021 - 15th Jan 21
The World’s Next Great Onshore Oil Discovery Could Be Here - 15th Jan 21
UK Coronavirus Final Pandemic Catastrophe 2021 - 14th Jan 21
Here's Why Blind Contrarianism Investing Failed in 2020 - 14th Jan 21
US Yield Curve Relentlessly Steepens, Whilst Gold Price Builds a Handle - 14th Jan 21
NEW UK MOT Extensions or has my Car Plate Been Cloned? - 14th Jan 21
How to Save Money While Decorating Your First House - 14th Jan 21
Car Number Plate Cloned Detective Work - PY16 JXV - 14th Jan 21
Big Oil Missed This, Now It Could Be Worth Billions - 14th Jan 21
Are you a Forex trader who needs a bank account? We have the solution! - 14th Jan 21
Finetero Review – Accurate and Efficient Stock Trading Services? - 14th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Stock Market Topping Action Start of the Great Reversal

Stock-Markets / Financial Markets 2010 Apr 27, 2010 - 02:43 AM GMT

By: Anthony_Cherniawski


Best Financial Markets Analysis Article(MarketWatch) -- U.S. stocks wavered Monday, with upbeat results from Caterpillar Inc. and Whirlpool Corp. boosting confidence, but with the government's plan to begin divesting itself of Citigroup Inc. weighing on financials.

"The markets have been doing just about what they're supposed to do, which is if the economic numbers are better than forecast, or if earnings are better than forecast, then the market should go up," said Hugh Johnson, chairman of Johnson Illington Advisors. "Valuation is starting to become an issue. The going is getting tougher, although that doesn't mean we're not going to continue to go up," he added.

Somali Pirates say, "We are doing God's work.”

Eleven indicted Somali pirates dropped a bombshell in a U.S. court today, revealing that their entire piracy operation is a subsidiary of banking giant Goldman Sachs. There was an audible gasp in court when the leader of the pirates announced, "We are doing God's work. We work for Lloyd Blankfein."

The pirate, who said he earned a bonus of $48 million in dubloons last year, elaborated on the nature of the Somalis' work for Goldman, explaining that the pirates forcibly attacked ships that Goldman had already shorted. "We were functioning as investment bankers, only every day was casual Friday," the pirate said.

Janet Tavakoli: "President Obama - Bring Back Black"

William K. Black, a regulator during the dark days of the Savings & Loan Crisis, gave the most sensible testimony about the financial crisis heard in Washington so far.* Fraud thrives and spreads in a regulatory free, highly paid, criminogenic environment. Cheaters prosper driving honesty out of the market.

VIX broke above its intermediate-term Support.

-- The VIX staged a third breakout above its intermediate-term Trend Resistance at 17.03. A breakout above its prior highs may confirm the new uptrend in VIX.

The CBOE Put-Call Ratio for equities ($CPCE) rose to .54 today. Retail investors are still bullish, and today’s action didn’t dampen their enthusiasm for stocks yet. The pros, on the other hand, have elevated the $CPCI to 1.46 (bearish) at the end of the day. The 10-day average is still high at 1.47.

SPY tests its upper trendline.

Action: Sell/Short/Inverse -- SPY made a new high this morning before drifting downward the rest of the day. It remained above short-term Trend Support at 120.30. Friday’s pivot window remained open today and it appears that something of a reversal may have taken place. What might improve our chances of a reversal would be steady selling throughout the night. The futures market is down as I write, so we have the distinct possibility of a gap through support in the morning.

The QQQQ repelled by the Broadeining Wedge.

Action: Sell/Short/Inverse -- QQQQ also briefly made a new high this morning before easing lower at the close. The Broadening Wedge seems to be dictating the top for this rally. The QQQQs closed above short-term Trend Support at 49.72. Considering all the liquidity that has been pumped into the market on the weekends, it is a surprise that QQQQ didn’t go higher. The reality of the weekend liquidity pump is one of the reasons why I cautioned us to wait until today for the pivot to reveal itself. On a longer-term cycle analysis, this week is a near-perfect time for a turn.

XLF rests at theopposite side of the Broadening Wedge.

Action: Sell/Short/Inverse -- XLF stopped at the lower trendline of its Broadening Wedge. In the process, it also closed below shortterm Trend Support at 16.58. We may have seen the last rally for XLF within its Broadening Formation. Once the trendline (and intermediate-term Support) is broken, we should see a swift decline to Model Support at 13.24. My guess is that there may be an “event” affecting one of our major banks, perhaps Citigroup?

FXI is still in neutral territory.

Action: Neutral -- FXI tested intermediate-term Trend Resistance at 42.21, but couldn’t maintain the rally. I am concerned about my analysis on FXI. In order to follow the Shanghai Index, it would only need a slight decline before its next rally. Since February5th, I had assumed that it would track U.S. equities. The chart may be wrong, however. The Broadening Formation may not be the governing pattern. Let’s wait for it to clear up some more.

GLD is once again above all supports.

Action: Sell/Short/Inverse below 112.50 -- GLD declined slightly, but remained above its short-term Trend Support at 112.50. A rally above 114.13 would invalidate the triangle formation, so we must take care that GLD is not in a larger rally than is allowed by the triangle. The primary pattern is still the triangle, but we should be sure that GLD declines through the pattern and below intermediate-term support to confirm the bearish view.

USO declined to intermendiate-term Trend Support.

Action: Sell/Short/Inverse -- USO may be beginning its next relay lower. It closed near its intermediate-term Trend Support/Resistance at 40.32. Once below support, USO has a potential to decline to the lower trendline or possibly lower. Ultimately, it is due for a decline back down to the Cycle Support area at 34-35.00. The top view is that it is probable that USO may continue its decline to its next cycle low due in early May.

TLT pivots on a reversal pattern.

Action: Sell/Short/Inverse --TLT completed its reversal pattern today, also a pivot day for bonds. It closed above short- term Trend Support/Resistance at 89.78. Contrary to most who believe that bonds will rally in an equity decline, this pattern shows potentially the opposite behavior. TLT achieved its swing high on Thursday and now may decline into mid-May.

UUP gains momentum.

Action: Buy/Long -- UUP has not been able to rally higher, although it is still above short- and intermediate-term Trend Support at 23.70-23.72. The cycles call for a potential lower low by mid-May in UUP and I believe that the inability to rally is warning us of its coming. That means the rally to 24.14 is complete and a pullback to one of the Fib retracements is now in order.

Traders alert:  The Practical Investor is currently offering the daily Inner Circle Newsletter to new subscribers.  Contact us at for a free sample newsletter and subscription information.

Our Investment Advisor Registration is on the Web

We are in the process of updating our website at to have more information on our services. Log on and click on Advisor Registration to get more details.

If you are a client or wish to become one, please make an appointment to discuss our investment strategies by calling Connie or Tony at (517) 699-1554, ext 10 or 11. Or e-mail us at .

Anthony M. Cherniawski, President and CIO

As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

Disclaimer: The content in this article is written for educational and informational purposes only.  There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

Anthony M. Cherniawski Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules