Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19
The Exponential Stocks Bull Market Explained - Video - 13th Mar 19
TSP Recession Indicator - Criss-Cross, Flip-Flop and Remembering 1966 - 13th Mar 19
Stock Investors Beware The Signs Of Recession / Deflation - 13th Mar 19
Is the Stock Market Still in a Bear Market? - 13th Mar 19
Stock Market Trend Analysis 2019 - 13th Mar 19
Gold Up-to-Date' COT Report: A Maddening Déjà Vu - 12th Mar 19
Save Fintech? Ban Short Selling. It's Not That Simple - 12th Mar 19
Palladium Blowup Could Expose Scam of Gold & Silver Futures - 12th Mar 19
Next Recession: Concentrating Future Losses & Bringing Them Forward In Time As Profits - 12th Mar 19
The Shift of the Philippine Peso Regime - 12th Mar 19
Theresa May BrExit Back Stab Deal Counting Down to Resignation, Tory Leadership Election - 12th Mar 19
Phase 1 of Stock Market Correction - 11th Mar 19
Long Awaited Stock Market Pullback has Finally Arrived - 11th Mar 19
US Presidential Cycle and the Stock Market - Video - 11th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - 11th Mar 19
Chinese Economic Data Shakes the Global Stock Markets - 11th Mar 19
The Fed Is Playing a Dangerous Game - 11th Mar 19
The Stock Market Has Called the Fed’s Bluff, What’s Next? - 11th Mar 19
Turkey Holiday Bazaar Extreme Jewelry Price Haggling - Fethiye Market - 11th Mar 19

Market Oracle FREE Newsletter

Stock and Finanacial Markets Trading Analysis Worth

Stock Market Breaks Neckline, Gold Trending to Below $1200

Stock-Markets / Financial Markets 2010 Jul 01, 2010 - 05:35 AM GMT

By: Anthony_Cherniawski

Stock-Markets Diamond Rated - Best Financial Markets Analysis ArticleU.S. stocks fell, extending the market’s first quarterly retreat in more than a year, after Moody’s Investors Service’s warning that it may downgrade Spain snuffed out an earlier rally.

The Standard & Poor’s 500 Index fell 1.1 percent to 1,030.11 at 3:45 p.m. in New York. It has declined 12 percent since March 31, breaking a four-quarter winning streak that drove the benchmark index for U.S. stocks up 47 percent. The Dow Jones Industrial Average fell 115.44 points, or 1.2 percent, to 9,754.86.


Bill Fleckenstein Says You Can't Trust S&P PE Multiples As All The Financials' Earnings "Are Pure Nonsense"

A casually dressed Bill Fleckenstein was on Bloomberg TV bursting assorted myths and bubbles. First, Bill discusses how the market is no longer a discounting mechanism, noting that "after having completely ignored the bursting of the dot com and the real estate bubbles, I think this a function of the fact that since Greenspan took over the Fed and serially bailed out bigger and bigger problems with more and more easy money, the market evolved into much more of a speculative casino, and a lot more momentum type traders began to operate and everything always resolved itself on the upside... We have had much more of a speculative market that seems not to discount problems."

Goldman Technician Says To Short Market Unless S&P 1083 Is Recovered Today

(ZeroHedge) …we present the following piece of technical analysis from Goldman's Tony Pasquariello. According to the technician, a critical level to watch is the 12-month moving average, which many consider a critical indicator of upward (or downward momentum). According to Goldman, "unless S&P recovers the 1083 level today, we will have crossed down and through the moving average. On this simple basis, the technical signal is to be short the market." Do you think Goldman was already short?

VIX retested intermediate-term Support.

-- VIX retested intermediate-term Trend Support at 31.51 before closing higher today. This is clearly the beginning of a third wave, where Head & Shoulder necklines and Broadening Top trendlines are taken out. Count on it. The CBOE Put-Call Ratio for equities ($CPCE) stayed neutral at 1.04, as retail investors awake from their lethargy. The pros relaxed a little as $CPCI drifted to 1.04 at the end of the day. The 10-day average remains bearish at 1.38. The NYSE Hi-Lo index closed up 29 points today to -69. The Hi-Lo index remains in bearish territory.

SPY closed below its Head & Shoulders Neckline.

Action: Sell/Short/Inverse -- Talking heads and many newsletter writers are waking up today to a new market as SPY closed below its neckline. I still cannot figure out why there was so much reluctance to call it a bear market. SPY didn’t cave below 104.00 until 3:00 pm when the big players took the field. From that point forward, volume spiked and selling began in earnest. Yesterday I suggested that, “The mood in the market does not support a rally at this time.” Now that the end of quarter is behind us, we can expect downside acceleration as early as this overnight session.

QQQQ is heading for its own neckline.

Action: Sell/Short/Inverse -- QQQQ now has its own Head & Shoulders neckline in sight. The lower trendline of the Broadening Top also has the ingredients for a neckline of a large Head & Shoulders pattern. If the pattern is followed through, the new target for this decline is 31.57. By the way, the average decline once the Broadening Top is violated is also 31.57. ICI reports the eighth consecutive week of equity fund outflows. I wonder why?

XLF is now at its neckline.

Action: Sell/Short/Inverse -- XLF managed to close just above its Head & Shoulders neckline today. There is a good probability of taking out the neckline tomorrow, which leaves the lower trendline of the Broadening Top formation. Not surprisingly, both patterns have identical targets.

FXI closed below intermediate-term Trend Support.

Action: Sell/Short/Inverse -- FXI closed just below intermediate-term Trend Support/Resistance at 39.17. My model now confirms a downtrend, since all uptrend support has been taken out. The retracement rally from May 6th took an unusually long period of time, which doesn’t leave a lot of room for a decline by Monday, its next potential Trading Cycle low. Is China taking a turn for the worse? $SSEC closed at 2398.37 in what appears to be a bearish flag. The giant triangle that I have been following may have failed. I will reassess the pattern sometime next week.

GLD spends a second day at retracement levels.

Action: Sell/Short/Inverse (partial) -- GLD broke its intermediate-term Trend Support at 119.79, then rallied a second day, falling short of its 61.8% retracement level. I have a high confidence pattern on the break of the trendline, so my view hasn’t changed. I have recommended a partial short position, since this is a Broadening Formation and the pattern is not yet certain. We will add more short ETFs to our position when the share price closes below 119.80.

USO broke below intermediate-term Support.

Action: Sell/Short/Inverse -- USO broke and closed below intermediate-term Trend Support/Resistance at 34.04 today. You may be surprised to hear that the next target in USO is 18.00. (Bloomberg) Hurricane Alex picked up strength as it bore down on the energy-rich region of southern Texas and the western Gulf of Mexico, closing oil and gas platforms and ports from Corpus Christi, Texas, to eastern Louisiana.

Still cautious on TLT.

Action: Caution, no new positions -- There are several ways with which to view the pattern in TLT. All of them say we are in a topping process. Admittedly, it is still above its shortterm Trend Support at 98.60. There are arguably five waves up from the end of the triangle formation, but the last wave appears to be extending. In addition, I am expecting a Primary Cycle bottom in about two weeks. The next pivot in TLT is on Friday.

UUP closed above short-term Trend Support.

Action: Buy/Long -- UUP slipped in early trading, but managed to close above short-term Trend Support/Resistance at 25.02 today. The action shows that a much needed reversal pattern was put into play today. The action in UUP implies something dramatic is about to happen in the financial world. I am clueless, so far, but we will know when we see it. Tony

Traders alert:  The Practical Investor is currently offering the daily Inner Circle Newsletter to new subscribers.  Contact us at tpi@thepracticalinvestor.com 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 www.thepracticalinvestor.com 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 tpi@thepracticalinvestor.com .

Anthony M. Cherniawski, President and CIO http://www.thepracticalinvestor.com

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 http://www.MarketOracle.co.uk - 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