Todd Market Forecast
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Posted 12 September 2011 - 03:04 PM
Todd Market Forecast for Wednesday September 7, 2011
Available Mon- Friday after 6:00 P.M. Eastern, 3:00 Pacific.
DOW + 276 on 2350 net advances
NASDAQ COMP +75 on 1650 net advances
SHORT TERM TREND Bullish
INTERMEDIATE TERM TREND Bullish
First, we would like to congratulate Jeff Immelt of General Electric Corporation on the 10th anniversary of his ascension to CEO. During this time the Dow has risen around 1800 points or 16%. The stock of GE has dropped from 38 to 16 or a decline of 58%. Way to go Jeff.
Today we had quite a bit of good news to help the market. The German courts upheld the European bail out. Also, German industrial production rose more than expected. This caused the German market to rise 4% and pushed up the rest of Europe.
All during the day, we have CNBC on in the background and the opinions of guest analysts were almost universally bearish. This is a good sign.
The S&P 500 and most other important indices are making a pattern of ascending lows and ascending highs. This is a bullish pattern.
GOLD: Gold got clobbered as traders opted to chase the stock market rally. Also adding to the yellow metal’s demise was an overbought condition and resistance that we discussed yesterday. We’ll go back to a short term sell.
BONDS: Bonds made more progress. Still a bullish pattern.
THE REST: The dollar was up sharply. Silver was down, but copper and crude oil had gains.
Our intermediate term systems are on a buy signal.
System 2 traders sold the E-mini S&P 500 at 1199.25 for a gain of 61.25. They sold the SSO at 42.34 for a gain of 4.01. Stay in cash on Thursday.
System 7 traders are long the SPY from 118.40. Remain there on Friday.
NEWS AND FUNDAMENTALS:
The ISM services number came in at 53.3, more than the expected 51.0. On Wednesday we get the Fed’s Beige Book.
We’re moving to a sell for bonds as of today September 7.
We’re on a buy for the dollar and a sell for the euro as of August 4.
We’re moving back to a sell for gold as of today September 7.
We’re on a buy for silver as of August 26.
We’re on a buy for crude oil as of August 29.
We’re on a buy for copper as of August 11.
We are long term bullish for all major world markets, including those of the U.S., Britain, Canada, Germany, France and Japan.
A SHORT BIOGRAPHY
Editor and publisher of the Todd Market Forecast, a monthly stock market newsletter with an included nightly hotline.
Steve has published articles on the stock market in the following publications: Barron’s, Stock Market Magazine, Futures Magazine, The National Educator, and others.
His stock market commentary is heard on the following stations: CNBC, Bloomberg, Associated Press Radio, Business Radio Network, CKNW in Vancouver, British Columbia, KFWB, Los Angeles and ROBTV in Toronto, Ontario.
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Timer Digest of Greenwich, CT monitors and ranks over 100 of the nation’s best known advisory services. If you have heard of an advisor, it is likely that he or she is monitored and ranked by Timer Digest.
Once per year, in January, Timer Digest editor Jim Schmidt gives the rankings for all services monitored for multi year time frames. We were ranked ranked # 1 for the past ten years at the end of 2003, 2004 and 2005. At the end of 2006 we slipped to #3 and at the end of 2007, we were ranked # 5.
Our bond timing was ranked # 1 for 2007 and 2008. Gold timing was ranked #1 for 1997 and #2 for 2006.
For 2010, we were ranked the # 4 long term stock market timer.
TODD MARKET FORECAST
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