Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
What ECB’s Tiering Means for Gold - 17th Nov 19
DOJ Asked to Examine New Systemic Risk in Gold & Silver Markets - 17th Nov 19
Dow Jones Stock Market Cycle Update and are we there yet? - 17th Nov 19
When the Crude Oil Price Collapses Below $40 What Happens? PART III - 17th Nov 19
If History Repeats, Gold is Headed to $8,000 - 17th Nov 19
All You Need To Know About Cryptocurrency - 17th Nov 19
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19
Gold and Silver - The Two Horsemen - 11th Nov 19
Towards a Diverging BRIC Future - 11th Nov 19
Welcome to the Zombie-land Of Stock Market Investing - 11th Nov 19
Illiquidity & Gold And Silver In The End Game - 11th Nov 19
Key Things You Need to Know When Starting a Business - 11th Nov 19
Stock Market Cycles Peaking - 11th Nov 19
Avoid Emotional Investing in Cryptocurrency - 11th Nov 19
Australian Lithium Mines NOT Viable at Current Prices - 10th Nov 19
The 10 Highest Paying Jobs In Oil & Gas - 10th Nov 19
World's Major Gold Miners Target Copper Porphyries - 10th Nov 19
AMAZON NOVEMBER 2019 BARGAIN PRICES - WD My Book 8TB External Drive for £126 - 10th Nov 19
Gold & Silver to Head Dramatically Higher, Mirroring Palladium - 9th Nov 19
How Do YOU Know the Direction of a Market's Larger Trend? - 9th Nov 19
BEST Amazon SMART Scale To Aid Weight Loss for Christmas 2019 - 9th Nov 19
Why Every Investor Should Invest in Water - 8th Nov 19
Wait… Was That a Bullish Silver Reversal? - 8th Nov 19
Gold, Silver and Copper The 3 Metallic Amigos and the Macro Message - 8th Nov 19
Is China locking up Indonesian Nickel? - 8th Nov 19

Market Oracle FREE Newsletter

How To Buy Gold For $3 An Ounce

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