Jump to content



Photo

VRTrader Update


  • Please log in to reply
No replies to this topic

#1 TTHQ Staff

TTHQ Staff

    www.TTHQ.com

  • Admin
  • 8,597 posts

Posted 07 November 2011 - 01:55 PM

Posted Image

Cautiously Optimistic
With October being touted as the best performing month for stocks since
the 1970s and now with end of the month ‘window dressing’ and new
401(k) funds in the U.S. having been invested, I told you last week
that we have to on guard for a possible short-term top in the equity
markets and perhaps the metals as well. With the sole exception of
Spot gold which managed to push to at new recovery high of 1768.90,
other markets held the highs posted at the end of October. For example,
the S&P 500 topped out at 1292.66 on October 27. Platinum topped
out at 1661, Silver topped out at 35.78, Copper topped out at 3.75,
and Palladium topped out at 678 all on October 28! Last week we
asked whether these markets would be experiencing a ‘Trick or Treat’
synonymous with Halloween. So far, it appears we’ve been tricked! As
you know, equity and metal prices being driven by a worsening European
economic outlook. There is an expression that says you never only
find one cockroach! The failure of MF Global and its clear impact into
the U.S. marketplace hit home this past week, as we find the Chicago
Mercantile Exchange scrambling to lower margin requirements during
the transition of customer accounts away from MF Global. Greek Prime
Minister George Papandreou survived a vote of confidence this weekend,
but there is Italy, Ireland, and Spain waiting in the wings? I guess the
bottom line is that these markets have managed to recover despite a
worsening news environment and we have to give them credit for this.
The bearish argument, of course, is that all we’re experiencing is a ‘deadcat’
bounce and until we clear highs posted back in Spring, we cannot
be assured this is for real. Seasonality factors are positive and when you
look at the weekly chart of the PowerShares Deutsche Bank Gold Fund
(DGL) below, it is clear we’re overall still well within the parameters of
steady and orderly uptrend.

vrtrader.jpg

Shorter term, however, looking at the daily chart of PowerShares Deutsche Bank Gold Fund (DGL) below, please
note that we’ve basically filled the gaps that were our previously forecast upside objectives. This puts the burden
of proof clearly on the bulls to prove something greater is unfolding other than just a ‘dead-cat’ bounce. If we turn
south from here (especially on heavy volume), we may have to once again take defensive action in the form of
hedging with inverse ETFs, so stay tuned.

vrtrader2.jpg

Bottom Line: We’re giving the overall bull market (uptrend) the benefit of the doubt, but recognize that we may still
be in a corrective period following the big August and September peaks. We’ve pointed out that back in 2008, gold
experienced a six-month 34% correction from 1000 down to 666 before the worm turned. That said, there is no way
we can predict a repeat of this kind of volatility. We just have to be psychologically prepared for it and, if trading,
take advantage of the swings. As you can see in that we’re fully invested in our Core and Aggressive Portfolios. It is
clear we believe that overall upside potential still exceeds downside risks if you’re playing the game, as we are, on a
‘big-picture’ basis.

[redacted]

Mark Leibovit is Chief Market Strategist and Publisher for the Leibovit VR Gold Letter and the author of ‘The Trader’s Book of Volume’ which was published in 2011 by McGraw-Hill. You may have recognized Mark as one of the ten “Elves” on Louis Rukeyser’s Wall Street Week television program where he served as a weekly consultant for 7 years and also as a regular Market Monitor guest for the past 30 years on PBS’ The Nightly Business Report. He is a popular speaker at investment conferences both in the U.S. and Canada and is often seen on Toronto-based Business News Network.

TIMER DIGEST Magazine has named him the #1 Gold Timer for the twelve-month period from 8/26/10 to 8/26/11 and the #1 Intermediate Market Timer for the 10-year period ending in 2007. Mr. Leibovit was a member of the Chicago Board Options Exchange where he became a market maker in several stocks including Newmont Mining. Through the late 1980s he was Technical Research Director for Rodman & Renshaw and subsequently began publishing several financial newsletters. He holds a CIMA and AIF designation and is a member of the Market Technicians Association (MTA) and the CFA Institute.

November 7, 2011

28
MetaStock has partnered with Mark Leibovit, the award-winning Chief Market Strategist for VR Trader, to bring you his proprietary Volume Reversal system. For the first time ever his trading methodology is now available to the public as a MetaStock Add-on. Mark Leibovit’s Volume Reversal toolkit is a collection of Mark Leibovit’s time-tested trading methodologies.

http://www.vrplug-in.com/

Try our latest MetaStock Add-on FREE for 30-Days Order online today to get your FREE trial or call 800-472-6083 Promo Code: WebOnlyLeibovit
---------------------------------------------

My book, ‘The Trader’s Book of Volume’ (published by McGraw-Hill) is now available.

Here is the link to Traders Press: http://www.invest-store.com/vrtrader/

Here is the link to Amazon.com: http://tinyurl.com/3wms9q2

In conjunction with Trader’s Library, come visit the VR BOOKSTORE where you can find Bestsellers, Just Out New Releases, Videos and Bargain Buys covering the gamut of investing in the stock market! Come shop today!