Market Monitor Extra - Mark Leibovit
Monday, September 28, 2009Mark Leibovit, Chief Market Strategist at VRTrader.com, prepared some additional analysis to accompany his Market Monitor interview, which aired on Friday, September 25th. You can watch the interview and explore the additional analysis below.
Extended Analysis from Mark Leibovit
The charts discussed below will open in new windows in your browsers once you click the links.
Chart: Crude Range
Discussion: Looking back to 2005 on a weekly Crude Oil chart, the $50 to $75 range has pretty much been the equilibrium point. That is, after seeing price extremes in both directions, Crude Oil has found comfort (supply meets demand) in this range.
Chart: Dow Jones Industrials Head and Shoulders
Discussion: Depicted herein is a weekly chart of the Dow Industrials showing a bullish reverse 'head-and-shoulders' pattern. The distance between the head and the neckline at its highest point is added to the neckline to calculate the amplitude of the move to follow. Since we have broken out above the neckline we should be heading toward the theoretical 11,500 target shown. A regular 'head-and-shoulders' pattern, i.e, the head is on top would have been a bearish formation.
Chart: GDX Daily
Discussion: GDX is the 'Market Vectors' Gold Miners Exchange Traded Fund. The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the AMEX Gold Miners index. The fund generally normally invests at least 80% of its total assets in common stocks and American depositary receipts of companies involved in the gold mining industry. A daily chart is herein presented showing volume slowing as the ETF moved higher, a bearish sign and a reason why we saw a pullback just following that event.
Chart: Gold Weekly
Discussion: This is a weekly chart of Gold depicting another inverse (bullish)
"head-and-shoulders" pattern. The distance between the head and the neckline at its highest point is added to the neckline to calculate the amplitude of the move to follow. Since we have broken out above the neckline we should be heading toward the theoretical 1300 target shown. A regular "head-and-shoulders" pattern, i.e, the head is on top would have been a bearish formation.
Chart: S&P with a Rising Channel
Discussion: You are looking at two rising channels for the cash S&P 500 (SPX). One from the March low and one from the September low. We broke down out of the September channel which triggered the current correction from 1080 to 1041. The bigger channel, however, shows support around 1005-1010 in the SPX. We could, in theory, be headed down there, but, remember, it's a rising channel and the upper end of that channel is
so high that you need a step ladder to see the top! Unless we break the lower end of the channel, the picture portrays a bullish market ahead.
