The Fred Report - Mid Week Update July 21, 2010Tuesday’s action was a classic outside day positive reversal, with a lower low and higher high than the previous day. Market indicators continue to improve, and we expect further advance. We continue to expect that the July lows were significant, and could even turn out to be the low for 2010.The Fred Report - Weekly July 19, 2010
We note that Transportation stocks, the Mid-caps, and other indexes still remain in positive configurations. While the bonds still look weak chart-wise to us, our accumulation model suggests that they still have a bit more choppiness before embarking on a sustained move to the downside. We expect a test of 115 to 114 on the GLD. We continue to like currencies vs. the dollar, especially the Yen (FXY).
The Fred Report - Mid Week Update July 14, 2010
We remain somewhat overbought short-term, but are handling it well and look for the upmove to continue. The Dollar yesterday had an outside day to the downside. This is a negative configuration, and suggests that our objective of 82 may be too low.
The Fred Report - Weekly July 12, 2010While we are somewhat overbought short-term, this rally could continue after some consolidation (or simply continue without a pullback at the first part of this week), as weekly indicators are still, by and large, in buy territory. The TLT has now broken back below 100, and this move could take it back to 92 or even lower by this fall. The DBC and the CRB Index both have bottoming patterns suggesting a rally in commodities is going to occur.The Fred Report - Mid Week Update July 8, 2010A correction of Wednesday’s up move, especially a churning correction, would be welcome and not a problem. We are still interested in mid-cap stocks (MDY), and think there will be longer-term out performance in this area. The ingredients for a strong up move are certainly a “clear and present possibility”. We continue to like Gold longer-term, but expect to see choppiness over the next month or so.The Fred Report - Weekly July 6, 2010We expect a choppy, but ultimately up week in stocks and think a tradable low has arrived. A close below 100 on the TLT would tend to confirm a false breakout, and could lead to a decline in bonds, and a rise in rates, into the fall. Should the USO move back above 35, a move towards 40 could occur. The dollar looks to have peaked, and the Euro may have bottomed.The Fred Report - Mid Week Update June 30, 2010We continue to see favorable out performance on the part of the MDY, IWM, and IYT and this remains a factor in our positive outlook. China is actually outperforming the US on this decline.The Fred Report - Weekly June 28, 2010While this is a difficult market short-term, we will likely advocate taking a bit more risk this week, even if the market is stronger than we would like to see. We feel the USO could advance to test the 37 to 38 area here. The currency markets are in interesting positions and it appears to me that the Euro (FXE) has bottomed and the Dollar peaked, at least short-term.The Fred Report - Mid Week Update June 23, 2010Tuesday’s action continued the decline and has resulted in a short-term oversold condition. We are essentially looking for choppy action now, and a decent buy signal either after a down June monthly close (and possibly a down July close). Advisors should use this drop to slowly add stock positions (or fund positions, esp. in small and mid-cap stocks), looking for an advance later this summer.The Fred Report - Weekly June 21, 2010The stock market has improved, but still looks like some short-term choppiness is likely. We remain concerned about our monthly indicators, which are much longer-term in nature. If they can get a bit more oversold here, we will have much more fuel for a strong rally. We continue to expect the TLT to fall, and penetration of the 96 area should lead to a decline to 94 to 92 on that ETF. Longer-term, we are in the inflation, and not deflation camp – so gold remains a favorite investment. The Fred Report - Mid Week Update June 16, 2010It is options expiration so volatility is to be expected, but we still see a short-term top as being possible and one sign of that would be a big up open tomorrow that churns and then sells off. The FXE is rallying and could fill the gap that is in the 124 area.The Fred Report - Weekly June 14, 2010We have been looking for a better buying opportunity later this summer, and for now we remain cautious. We still think the markets will be higher than here at the end of the year. We note that the DBC looks to be putting in a bottom and should it rally above 22.00 that would be a strong indication that these commodities have bottomed.The Fred Report - Mid Week Update June 9, 2010
Right now, both daily and weekly 5 and 20 moving averages are negative. At this time, it appears that, should the market advance immediately, these averages will take a while to cross, which suggests that rallies here are likely to be less than robust.
The Fred Report - Weekly June 7, 2010We continue to expect a choppy market with sharp rallies, but a longer-term downward bias for the next couple of months. Aggressive advisors not afraid to take risks may now want to add international bond exposure again. Our accumulation model is starting to show some selling in gold on this rally.The Fred Report - Mid Week Update June 3, 2010We certainly could see a rally for the first two weeks of June, which could then fall off into the end of the month. We feel that this correction (which we feel is still underway) is a correction in a bull move, and that higher highs for the year will result.The Fred Report - Weekly June 1, 2010We note that daily indicators are oversold enough to produce a one to two week rally at this point. We continue to suggest taking some capital gains in bond positions at this juncture. As long as the GLD remains above the 115 area we would expect new highs through summer at least. For now we look for a pullback in the dollar. The Fred Report - Mid Week Update May 26, 2010Short–term indicators look like a good trading rally should now occur. It would be ideal to see the market stabilize here and build a base where we chop around for enough time to get the monthly and weekly indicators down into a buying zone. Traditionally, stocks rally some into Memorial Day weekend.The Fred Report - Weekly May 24, 2010While we remain cautious a few moths out, we can still see a positive end to 2010. We continue to look for new highs in Gold through summer and again in the winter. Overall, we expect speculative money to move into small and mid cap US stocks, and away from international markets for a while.The Fred Report - Mid Week Update May 19, 2010The momentum on the downside coming into May was stronger to the downside than expected. We see weakness in Financials, Healthcare, as well as Utilities. For traders, should close below SPX 1110 we would cover trading shorts.The Fred Report - Weekly May 17, 2010This week is options expiration, and is the first one in a while where there has been a surge in put buying in the equity indexes. Often this leads to very volatile trading. We note that Friday’s rally on the TLT filled a gap, and if this market turns down this may signal a move back down to the bottom end of the trading range. Indicators on oil are suggesting at best a weak rally, and likely no rally at all.
