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#1 TTHQ Staff

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Posted 07 July 2009 - 09:05 AM

TheVRTrader.com VR Silver Newsletter - Tuesday 7/7/2009
"Tools for the High Performance Trader"
Copyright ©2009, All rights reserved.
Redistribution in any form is strictly prohibited.
LEIBOVIT FILES | by MarkLeibovit
Leibovit Files
Tuesday, July 07, 2009


500 Points To The Downside Ahead For The Dow Industrials?

It may be the story of the decade, but I think it's the story of thecentury - The 'unveiling' of Goldman Sachs! The unveiling of theFederal Reserve is the next big story, but I'm going there now.Meanwhile, it is a fact that Goldman Sachs has essentially become abranch of the US government. Principals of Goldman flow in and out ofkey positions in the government and the practice is condoned time aftertime. It is clear, at least to me, that a grand payoff is in progresseither in political contributions, future jobs or investmentopportunities. Folks, our hands are tied until that future time whensomeone like Ron Paul sits as the Speaker of the House. The Main Streetpress are ignoring the Goldman Sachs story in fear of retribution. Whatelse is new?

Another Goldman Sachs story link:http://www.thedailycrux.com/content/2231/Goldman_Sachs/eml


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UPCOMING ECONOMIC RELEASES/MARKET EVENTS
July 7 - July 10, 2009:
---------------------------------------------
TUESDAY, July 7:

Turnaround Tuesday?

ICSC-Goldman Store Sales
7:45 AM ET

Redbook
8:55 AM ET

4-Week Bill Auction
1:00 PM ET

3-Yr Note Auction
1:00 PM ET

Treasury STRIPS
3:00 PM ET
---------------------------------------------
WEDNESDAY, July 8:

Weird Wally Wednesday

MBA Purchase Applications
7:00 AM ET

EIA Petroleum Status Report
10:30 AM ET

10-Yr Note Auction
1:00 PM ET

Consumer Credit
3:00 PM ET
---------------------------------------------THURSDAY, July 9:

Chain Store Sales

Federal Reserve Gov. Elizabeth Duke speaks to FDIC's InteragencyMinority Depository Institutions National Conference in Chicago.
8:00 AM ET

Jobless Claims
8:30 AM ET

Wholesale Trade
10:00 AM ET

EIA Natural Gas Report
10:30 AM ET

3-Month Bill Announcement
11:00 AM ET

6-Month Bill Announcement
11:00 AM ET

30-Yr Bond Auction
1:00 PM ET

Fed Balance Sheet
4:30 PM ET

Money Supply
4:30 PM ET
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FRIDAY, July 10:

International Trade
8:30 AM ET

Import and Export Prices
8:30 AM ET

Consumer Sentiment
9:55 AM ET

Treasury Secretary Tim Geithner testifies before joint hearing of HouseFinancial Services and Agriculture Committees on derivativesregulation.
10:00 AM ET
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STOCKS - ACTION alert -

It's simple for those of you whose roots go back to 'TechnicalAnalysis of Stock Trends' by Edwards and McGee. The Dow Industrials isnow in the process of completing a bearish 'head-and-shoulders' patternthat traces back to May and which measures '500 points' to thedownside. Obviously, that would not put us back to new lows, though Ido see new lows in the months ahead, but it is a clear warning for allthose 'good news' bulls out there and the mouthpieces of Goldman Sachsand the Federal Reserve telling us that we're in a new bull market.

You don't have to be a genius to know that the market is up on'air'. It is being manipulated by the Plunge Protection Team andGoldman Sachs via their strategic purchases of S&P and Dow futuresat critical market moments. Perhaps the correction ahead will turn outto be only a retest of recent lows and the market will be 'engineered'higher afterwards, but, ultimately reality will set in, reality whichis quite ugly in my view. The consumer is broke. He cannot tap into hishome and credit card privileges are rapidly being curtailed. Job lossesare horrific as the economy sinks more and more into the quicksand. Mygreat fear is that deflationary forces are even greater thananticipated and the need for liquidity and sheer financial survivalwill drive all assets into oblivion. For me, oblivion is defined as theDow Industrials trading at 1000 - a potential target I've beenspeculating about for months.

Today is 'Turnaround Tuesday' and tomorrow is 'Weird WallyWednesday'. Looking above I see a full moon. Lunacy will prevail!

The market started the day to the downside as traders are nervousthat the economy is not picking up. But the indices held their Junelows and rallied into the close. For the session, the Dow was up 44.13at 8324.87, the S&P 500 was up 2.30 at 898.72, and the NasdaqComposite was down 9.12 at 1787.40. Volume increased over Thursday andbreadth was negative.

There are some interesting crosscurrents at work here as the S&P500, S&P 400 (mid caps), and Russell 2000 (small caps) all foundsupport at or near their down sloping 200 day moving averages and theNasdaq Composite bounced higher off of its 50 day moving average. Yetat the same time, yesterday's star performer was consumer staples. XLPwas up 2.05%, while past leaders such as tech (XLK -0.28%) and smallcaps (IWM -0.88%) both continued to show relative weakness.

Financial stocks finished strongly to eek out a miniscule gain (+0.09%)on weak volume. Industrials were weak also (IYJ -0.44%), which signalsa lack of confidence in the manufacturing sector. And of course thecommodity sectors got hit by falling metals and energy prices.Materials (XLB) fell 0.80% while Energy (XLE) fell 1.02%.

We may get a short term bounce here as the Dow looks like it wants totest 8400 - 8450 and the S&P wants to get back into the 910 - 915range, but unless some real strength comes in the form of widespreadPositive Volume Reversals ™, any rallies should be viewed withskepticism. As mentioned, we have 'Turnaround Tuesday' today followedby 'Weird Wally Wednesday', so a reversal of direction is likely eitheror both days. It is likely best to sit on the sidelines here and waitfor a good opportunity rather than trying to make something work inthis choppy market.

We closed out some bearish positions yesterday morning, taking somenice profits. Good timing too because the market rallied after we gotout. Trading has been difficult lately with the indexes moving back andforth but not establishing any trends. I am always glad to take aprofit in this kind of choppy market.

In foreign markets, Mexico's equity market fell Monday after PresidentFelipe Calderon's ruling party lost majority control in this weekend'smidterm congressional elections, raising the prospect that plans forhis party's economic reforms will stall. Mexico's IPC index fell 1.26%to 23,742.49. The Mexican Peso initially fell but recovered to finishunchanged. In preliminary results from Sunday's election, theInstitutional Revolutionary Party, or PRI, which had ruled Mexico forroughly 70 years through 2000, captured the majority of votes for openseats in the lower house of Congress, or Chamber of Deputies. PRI,according to the Federal Electoral Institute, won 38% of the vote andCalderon's National Action Party, or PAN, won 29% of the vote. Morethan 98% of votes have been counted. The final tally is due Wednesday.

We have been talking about the risk aversion showing up in tradingpatterns as this topping pattern has been traced out. Yesterday'strading continued that trend.

Of course, anyone who listens to CNBC and the Obama administration getwhat they deserve. Things are NOT getting better out there. They canthrow all of the massaged government numbers they want at us, we willcontinue to simply watch the equity and bond markets. This rally hasbeen showing signs of fatigue for some time.

This week should continue to be interesting as traders may try toretest the lows again. If the May lows come out, it could be a quickride back down to 800 in the S&P, as no natural support levels wereformed on the way up.

Overall market momentum peaked in April (according to the 20 day rateof change indicator) with the remainder of this upward push coming fromchoppy action with an upward bias. Bull markets are not built onchoppy, low volume rallies. This action over the last four months hasbeen corrective and another downturn is coming. Until we get a movebelow the May lows, however, the trend remains up no matter howprecarious it appears, and we will trade accordingly.

We still believe that this rally is on borrowed time, however, and wewill trade 'em as we see 'em in this historically bullish time frame.

I remain on my 'Timer Digest' sell signal which is my way ofcommunicating I expect to see lower prices over the near-term - atleast a correction which could test the March lows. Now, if we manageto hold last week's lows coming into the 'Fourth of July' (e.g., 888.86in the S&P 500, 3041.05 in the Dow Transportation Average, 8259.43in the Dow Industrials and 1753.78 in the Nasdaq Composite), then weare likely to see another push to higher highs into July or possiblyAugust.

On the way down this past week Volume Reversal ™ downsideprojections were flashed in the S&P 500 to 803.78 in the DowIndustrials to 7461.00 and in the Nasdaq Composite to 1685.34. If wetake out recent highs, e.g., 952.63 in the S&P 500, 8877.93 in theDow Industrials and 1879.92 in the Nasdaq Composite, I would call theseprojections into question until these past weeks lows (cited above) arebroken at a later date.

I know I'm coming from way out in left field, but my overall feeling isthat by the time this bear market is over which could be another 3 or 4years, the Dow Industrials have by then given up 90% of its valuesomewhat mirroring the pattern we saw back in the 1930s. That wouldplace the Dow Industrials near 1500, yes 1500 - virtually giving up allthe gains made since the 1000 low posted back in 1982! It's one hell ofan unwinding process, that's for sure.

I hope I'm dead wrong and will certainly trade 'em as I see 'em alongthe way, but that's my current view. That's one of the main reasons Iam so gung ho on gold, because I feel as a store of value gold will bea greater asset than equities (with the exception of gold shares andother natural resource plays).

The bulls also should pray for greater weakness in the US Dollar Index,the lack of which will likely put a lid on any stock market (or goldmarket) rally.

---------------------------------------------
DOW TRANSPORTS - ACTION alert -

The Dow Transports opened sharply lower, but slowly worked its wayback, helped out by falling oil prices. The Dow Jones TransportationIndex gained 6.90 or 0.22% to 3165.64. Not an impressive gain, but muchbetter, for the bulls, than the 60 points or 1.9% it had been down. Butthe intraday recovery does little to change the chart with the mostnoticeable feature being that the Transports have failed to breakthrough the 200 day moving average twice.

Overall, the Transports haven't moved anywhere in the last two months,which was a good sign that the economic recovery that everybody wastalking about was just a big hoax.

As I've mentioned before, the Transports have recently gotten doublehit by the weak economy and high oil prices. Now, the Transports havebeen outperforming recently as oil prices pull back. But, I am not surehow much the market has priced in the higher oil prices. Earnings inthe first quarter were only partially affected by the higher cost ofdoing business, but second quarter earnings could see somedisappointing results.

The Dow Transports, which I truly consider the leading index for theentire stock market, have yet to close above the key 200 day movingaverage. I recognize that other indexes have already done so and theDow Transports have simply lagged, however, it could also be providingus a warning sign, so let's see if this coming week changes anything inthis regard.

---------------------------------------------
GOLD and METALS - ACTION alert -

Precious metals recovered some of their early losses as the Dollar gaveup its early gains, but still closed down on the day. That negative VRwe got on June 3 has shown a lot of resilience and remains in effect.Gold was down 6.90 to 924.90. Silver was down 0.12 to 13.25. Platinumwas off 42 at 1144 and palladium was down 8 to 240.

We continue to sit tight on our gold positions. While this decline hasnot been fun for gold bulls, I predicted this pullback. If the USDollar Index gains further upside momentum for other than fundamentalreasons, i.e., a Goldman Sachs/Us Treasury manipulation, look for lowerGold prices. However, I much prefer owning gold at this point tostocks, which can crash any day, or Treasuries with their low yield andnew supply constantly being sold into the market.

Though equities and metals can diverge, they are not tracking together,especially when the US Dollar Index upticks. Overall, however, I aminclined to hold natural resources, especially Gold, as store of valuein uncertain times.

We got Negative Volume Reversals ™ on June 3 in the precious metalsand, despite some ups and downs, we continue to decline. Overall, Ibelieve this is only a temporary correction. My guess is that there isrisk Gold could see 890 (with maximum risk to 800), especially if theUS Dollar Index rallies further short-term. Ultimately, I expect Goldand the US Dollar to end their inverse relationship, but, for now, itseems to be working more than not.

Gold is still not too far from its recent high of 1007.20 from February20 and the all time high of 1037 from March 17, 2008. Silver hit itshighest level since August 2008 on June 3, marking an 80% from itsNovember/December 2008 low.

Overall, I believe surprises are to the upside and if we're mirroringthe '1979' pattern, we could be looking at 12-18 months of explosiveupside action ahead. Maybe we have to wait 18 to 24 months and I'mearly, but bearish sentiment, let's call it disbelief, still runs highfor Gold. The fact the Gold shares have been leading the metal higheris a very bullish sign. Gold is volatile and has been manipulated bythe US government for decades. Paul Craig Roberts was AssistantSecretary of the Treasury in the Reagan administration. He is co-authorof The Tyranny of Good Intentions. He can be reached at:PaulCraigRoberts@yahoo.com. He writes: "If incompetence in Washington,the type of incompetence that produced the current economic crisis,destroys the dollar as reserve currency, the "unipower" will overnightbecome a third world country, unable to pay for its imports or tosustain its standard of living. How long can the US government protectthe dollar's value by leasing its gold to bullion dealers who sell it,thereby holding down the gold price? Given the incompetence inWashington and on Wall Street, our best hope is that the rest of theworld is even less competent and even in deeper trouble. In this event,the US dollar might survive as the least valueless of the world's fiatcurrencies."

My intermediate target for Gold is 1200 and my big picture target(possibly within the next two years) is for 3000. We could go evenhigher, but if we think in terms of a 20-year up cycle, i.e., into 2020there is plenty of time to see this unfold and I'm sure we're going tohave to trade it (both long and short) along the way. My view is that1000 will become the new FLOOR for Gold just as 1000 became the newFLOOR for the Dow Industrials when it broke through to the upside backin 1982.

One view here holds that deflationary forces will overpowerinflationary forces and Gold will FIRST decline. That may be true, butthe lessons of the 1930s show that gold-mining shares may showextraordinary gains in such a period. For example, between 1930 and1935 Homestake Mining rallied from $80 to $495 per share in adeflationary environment. The answer folks is to hold both physicalgold and gold mining shares to get the best of both worlds, i.e., dowell in a deflationary environment and an inflationary environment.

We hold Gold as a safe-haven asset, a portfolio diversifier, to protestagainst inflation and deflation, and, most importantly, to protectagainst the debasement of our currency and all currencies (fiat money)will lead to their demise. This is why you own Gold. You also own Goldas the 'tea parties' in our country are a warning of more trouble aheadboth in terms of a financial crisis but also in terms of impendingsocial unrest. During the 1930s during deflation, gold shares were starperformers as the cost of mining gold sank. Silver should outperformduring an inflationary period, however.

Silver (spot) touched 16.28 on June 3 while the SLV (ETF) touched15.78. We have unfulfilled potential up to 18.00 on its way to newhighs above 21.00. Support is 1154-1189, 1061-1085 and 961-980.

Copper hit a recovery high of 2.4575 on June 10. Potential now is to2.75. The bear market low at 1.26 was posted back on December 16.Copper stockpiling by a secretive Chinese state organization has helpedtrigger an impressive 35% for the red-metal this year.

The VR Gold Letter is available to Platinum subscribers for anadditional $50 per month versus the regular $125 per month rate, whilefor Silver subscribers the price is only an additional $70 per month.Separately, the VR Gold Letter retails for $1500 a year! The VR GoldLetter is published WEEKLY. It is jam-packed with commentary andcharts. Please call or email us right away. Tel: 928-282-1275. Email:mark.vrtrader@gmail.com.

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BONDS - ACTION alert -

Treasuries ended the day just slightly lower as traders worried aboutthis week's auctions even though yesterday's TIPS auction went well.The long bond future fell 7/64 to 118 53/64.

The Treasury Department sold $8 billion in 10-year Treasury InflationProtected Securities on Monday at a rate of 1.920%. Bidders offered$2.51 for every dollar of debt offered, the highest bid-to-cover in atleast seven years. Indirect bidders, a class of investors that includesforeign central banks, bought 49.7% of the sale. In January, they took47% of the sale. The proportion of sales going to indirect biddersappears to have jumped up significantly last month after a change inthe way bids are tabulated. TIPS pay investors a coupon plus the rateof inflation, as measured by the consumer price index. Recently, thegap between the yield on TIPS and regular Treasurys was 1.67 percentagepoints.

Still on tap, the Treasury Department will sell $35 billion in 3-yearnotes today. Wednesday will bring $19 billion in 10-year notes, withanother $11 billion in 30-year notes on Thursday.

The Federal Reserve Bank of New York bought $7 billion in Treasurysmaturing between 2013 and 2016, the first of two buyback operationsthis week. Dealers offered $18.151 billion to be purchased. When theFed last made purchases from this maturity range, it bought $7.5billion.

Treasuries have seen quite a rally in the past few weeks, with the longbond future rallying from a low of 111 43/64 to Thursday's high of 11919/64. But we must also remember that the long bond future hit a highof 142 60/64 back in December and we have fallen quite dramaticallyfrom that level.

The Federal Reserve has promised investors that zero interest rateswill linger even if the economy picks up, said James Bullard, thepresident of the Federal Reserve Bank of St. Louis on Tuesday. Ratherthan focusing on rates, the Fed's innovative asset purchase programswill be the central focus of policymakers, Bullard said. The Fed'sinnovative programs to keep credit flowing through the economy couldend next year if financial conditions improve, Bullard said. Thecentral bank's exit strategy may have to involve the actual sale ofassets that the Fed has bought over the past two years, Bullard said.Other exit strategies are untested, he said. Bullard is in the camp ofFed officials worried that the increase in bank reserves could lead toinflation down the road.

Treasuries have an interesting problem here. If the economy continuesfalling, Treasuries should benefit from the Fed keeping interest rateslow and the flight to safety. However, the weak economy will onlyenlarge the already huge budget deficit, thus brining even more supplyto market. It appears that Treasuries will be weak, in the long run,either way thanks to those budget deficits, but could rally in theshort term on a flight to safety.

Though we have recovered somewhat in the last few weeks, the fallingbond market of the last six months is not a good sign. First, risingTreasury rates will cause mortgage rates to rise, hurting the housingmarket which needs all the help it can get. Furthermore, with thegovernment racking up huge deficits on top of its already giganticdebt, higher rates will make its interest payment balloon, increasingthe debt even further.

We must distinguish here between monetary inflation and priceinflation. The Fed and Treasury are creating money out of thin air,which is monetary inflation. This was hurting the US Dollar and helpingprecious metals. However, over the last year, prices have actuallyfallen as production has fallen dramatically, leaving companies withlots of unused capacity. But we have seen not only precious metalprices rise recently, but also energy and industrial metals. Companiescan't raise prices with the consumer hurting and all their extracapacity, but their raw material prices are rising. As a result,companies have only two choices: shrinking profits or cutting employeewages. Of course, we have been seeing both. As a result, we have fallenconsumer prices along with rising commodity prices.

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CRUDE OIL - ACTION alert -

Oil fell sharply yesterday as traders worried that the marketoverestimated the economic recovery and future demand for oil. Crudeoil fell 1.49 to 64.05.

If the oil executive believed all the hype about the improving economy,oil prices could be heading sharply lower if they actually increasedproduction or didn't reduce production as a result. Taking the pricesignals when oil rallied from the 30 to over 70, they very easily couldhave believed it. But oil might not stay that high and all the oil theyare producing profitably at 70 may have nowhere to go if the economydoesn't live up to hype.

Oil has been rallying, but is now getting hit by the realization thatthe economy is not doing too well. Expect oil to continue trading withthe stock market for now as there is more than enough supply ininventory to weather any geo-political turmoil out of the Middle-East,Venezuela, or Nigeria.

When Crude Oil satisfied my projected 70 target, we began hearingextreme bullish forecasts just as we began to hear extreme bearishforecasts when Crude Oil was trading in the 30s. I have no new highertargets, so I neutral to bearish on Crude Oil here until technicalstell me otherwise.

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US DOLLAR - ACTION alert -

The Dollar rallied yesterday morning as the stock market fell andtraders rushed to safety. But with stocks ending slightly higher, thedollar gave up its gains. The US Dollar Index was up 0.072 to 80.454.

The key thing about the US Dollar Index is that it has been tradingsideways for the past month, stuck between 78.334 and 81.368. With adownward trend prior to this consolidation, odds favor a downsidebreakout, but its best to wait and see. Of course, a downside breakoutwill certainly help lift the precious metals, which have beenstruggling of late.

It appears we've seen a short term trading bottom in the US DollarIndex, but I'm not holding my breadth. Can the US Dollar Index make itto the 83.00 level? That would be the first important resistance level,but, so far, it has been unable to gain much upside strength. Eventhough I do not like to tie markets together inversely, it appears'It's the Dollar, Stupid!. Strength in the Dollar is will likely becoincident with weakness in stocks and gold over the short-term,despite table-pounding by those who advocate a stronger Dollar.

I repeat that his rally looks awfully similar to the sideways rally wehad in March and April, that was just a pause in the larger downtrend.With the US's huge budget deficit, weak economy, and active printingpress, pressure is on the Dollar. The Dollar's main reason to rallywould be a crash in equity markets and a flight to safety. While thisis certainly possible, there are better ways to play the flight tosafety besides holding US Dollars as they get devalued by the Fed andTreasury.

Previous Volume Reversal ™ projections pointed to 77.00 with apossibility of seeing 75.00. We have just recently hit a low of 78.426,which was its lowest level since December 18, when it hit a low of77.688, which is our next support level. If we break through thatsupport, we have support at 75.890 and then at the big low of 70.698from March 18, 2008. Ultimately, the US Dollar could be trading 50%below current levels!

A break under 78.334 will likely create a selling panic among Dollarbulls and drive Gold higher. However, a higher US Dollar Index willimpact both stocks and Gold negatively. I've been writing for monthsthat a weak Dollar is bullish for stocks. The Dollar had been fallingsince early May while the stock market has been rallying. And when theDollar rallies, the stock market has fallen.

It is becoming clear that U.S. debt instruments are no longer viewed asthe safe haven they once were among foreign investors. Our currency ispaying a price for the liquidity flood and debt issuance being createdby the Fed and the Obama administration.

As the market gets more and more comfortable with our economicsituation, the US Dollar declines. As the market crashed, tradersrushed in a flight to safety into the US Dollar. But now, even with theeconomy still in recession, it is no longer in freefall and the stockmarket is actually rallying. As a result, traders are converting theirUS Dollars back into local currency and preparing to spend of investtheir money again.

But, folks, we have to keep a watchful eye! The 'boys' may be planninga huge bear trap and we have to watch our indicators closely. Beartrap? Yes, this correction in the US Dollar Index may only be retest ofthe lows from last year (near 70.00) and could, in theory, be settingthe stage for another advance. Down the road should we break throughthe 89 'double-top' in the US Dollar Index, we might even see 100 - asuncanny as that may appear at this moment. Remember, financial marketswork to take as much money from as many people as possible suckeringthem in at big tops and forcing them out a big bottoms. It's Newton'sLaw of the markets!

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URANIUM - ACTION alert

Ux U3O8 Prices* (Uranium)
June 29, 2009 Posting
Spot: $52.00 DOWN 2.00. Bull market high in the cash market was$136.00.

The June Uranium Futures closed at $52.00. The current bear market lowis $42.00. June 13, 2007 hosted the bull market high of 154.95. Majorsupport lies well under the market at $36.00. Confirmation of a bottomis at hand with uranium shares in nice uptrends. We're long one ofthese in the Platinum service and looking at others.
---------------------------------------------
IN THE NEWS:

The service sectors of the U.S. economy contracted at a slower pace inJune, the Institute for Supply Management reported Monday. The ISMnonmanufacturing index rose to 47.0% from 44.0% in May. The decline wasbetter than expected. Economists were looking the index to rise to46.0%. Anthony Nieves, chair of the ISM services survey, said thereport was "encouraging." The business activity index rose to 49.8% inJune from 42.4% in the previous month. New orders rose to 48.6% from44.4%. The employment index rose to 43.4% from 39.0%. Inflationpressures picked up. The price index rose to 53.7% from 46.9% in theprevious month.

US Airways Group said Monday its mainline June traffic fell 4.1% from ayear ago to 5.4 billion revenue passenger miles. A revenue passengermile is equal to one passenger flown one mile. Total June capacity fell6.1% to 6.3 billion available seat miles from a year ago. Load factor,or the percentage of available seats filled with passengers, in Juneadded 1.8 points to 86.8%. LCC fell 3.7%.

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The Annual Forecast Model (VR Forecaster Report) is now posted at thewebsite - so sign up today! Remember, there is no price too high forgood information! Don't make the mistake of not subscribing. Lastyear's AFM warned in January we were entering a multi-month bearmarket! Gold-bug? Check on the AFM for Gold!

https://www.vrtrader.com/subscribe/index.asp
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THE CANADIAN DOLLAR (using the FXC Exchange Traded Fund):

The Canadian Dollar managed a small gain, spending the day tradingsideways in choppy action. FXC gained 0.24 to close at 86.16. But alongthe way, FXC hit a low of 85.66, its lowest level since May 18 and wellbelow it recent high of 92.57 on June 2.

A Negative Volume Reversal ™ was formed back on June 3 and, after abrief recovery, we have fallen to the lowest point in over a month.

The Canadian Dollar rallied 20.8% from the March 9 low to its 92.57high on June 2 and Platinum subscribers had been long for most of thattime and booked some nice gains. In the long term, the Canadian Dollarshould continue to be strong as the Canadian economy holds up betterthan most, their financial industry survives without the big losses weare seeing in the US and Europe, and strength in gold and oil, though aflight to safety could temporarily hurt the Canadian Dollar, as we sawon Wednesday.

Previously, Volume Reversal ™ projections to 93.00 have beensatisfied when we traded at 92.57 on June 2. There are otherprojections as high as 95.00 and 98.00, but they are for a later date.Meanwhile, a retracement back to the 83.00 level which is now underwaywas a reasonable expectation. We could even work lower. I think it isunlikely we're going to see big support at 78.68 violated which wouldlead to a break of the March 9 bear market low (76.59).

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TIMER DIGEST signals for Stocks, Gold and Bonds are available toPlatinum subscribers on the Home Page. We flashed a 'Buy' signal onMarch 4 for stocks and are now on a May 27 'Sell' signal.

TIMER DIGEST has named Mark Leibovit of VRTrader.com 'TIMER OF THEYEAR' for 2006 and was named the #2 Timer for 2007.

More kudos - Mark Leibovit was named the #1 Intermediate Market Timerfor the 10 year period ending in 2007; the #1 Intermediate Market Timerfor the 3 year period ending in 2007; the #1 Intermediate Market Timerfor the 8 year period ending in 2007; and the #8 Intermediate MarketTimer for the 5 year period ending in 2007. NO OTHER ANALYST SURVEYEDAPPEARED IN ALL FOUR CATEGORIES FOR INTERMEDIATE MARKET TIMING ASPUBLISHED IN TIMER DIGEST JANUARY 28, 2008!

Mark Leibovit was also named the #1 Gold Timer for the one-year periodending March 25, 2008. Most recently, from: 12/26/08 to: 03/27/2009, heis ranked in the #5 position for 3 month return.

A TIMER DIGEST 'Sell Signal' is currently in force since May 27.Recall, I previously flashed a 'Buy Signal on March 4.

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DAILY VR LIST:

Editors note: The Daily VR List here is abbreviated with the full listonly available to Platinum subscribers by clicking on 'Current VR List'on the Home Page of VRtrader.com. Canadian shares are listed at thebottom of each section with the title: 'XXX CANADIAN STOCKS XXX'.

Silver subscribers who find this useful should upgrade to Platinumwhere you can pull down VR charts for many securities and watch thepatterns unfold for yourself. There is no technical service on theplanet that posts Positive and Negative VR! Why? Because they areproprietary to VRtrader.com!

How do you use this list? VRs are buy and sell triggers and areparticularly useful in defining lows or highs in stocks and stockindexes. Traders find them particularly useful, especially coming offmarket extremes as an indication of a change of direction. Use the VRsin conjunction with your other technical indicators and you've added aunique technical tool to your arsenal.

What is a Volume Reversal? There are several proprietary subtleties tothe Volume Reversal ™ algorithm, but essentially a Volume Reversal™ is a change from a Rally day to a Reaction day accompanied by aincrease of volume or a change from a Reaction day to Rally dayaccompanied by an increase in volume. Volume Reversals ™ coming offintermediate lows or highs have greater significance in helping todefine those lows or highs and important pivot points in themarketplace. The Volume Reversals ™ presented here provide you witha unique research tool that may have trading (short-term) significance,but it also may have 'trend changing' (intermediate) significance aswell. The sector Volume Reversals ™ show where big money is possiblyaffecting an entire group of stocks. The stocks listed under the grouphave posted Volume Reversals ™ along with the group as a whole. Theindividual stocks listed have posted Volume Reversals ™ on their ownand are valid plays as well.

To see a visual representation of Volume Reversals ™, please go ourCurrent Portfolio section and click on any recommended stock. Or, ifyou would like to get a VR Chart for a specific symbol, please clickhere. Please note that not all symbols may be currently available.

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Volume Reversals - 7/6/09
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POSITIVE VRs
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XXX CANADIAN STOCKS XXX Canadian Stocks

CMW.UN CLAYMORE S&P/TSX GLOB MINING
DAY.UN DAYLIGHT RESOURCES TR
HGD.UN HORIZONS BETAPRO GLB TU-A
TCK.B TECK COMINCO LIMITED CL B
---------------------------------------------

AEROSPACE/DEFENSE Aerospace/Defense Products & S

ADG Allied Defense Group (the)
TDG TransDigm Group Inc

AUTOMOTIVE Auto Manufacturers - Major

HMC Honda Motor Co Ltd Adr

AUTOMOTIVE Auto Parts

SUP Superior Indust Internat

BANKING Foreign Regional Banks

EUBK Eurobancshares Inc
SHG Shinhan Finl Grp Co Ltd

BANKING Money Center Banks

BNS Bank Of Nova Scotia (the)
SBP Santander Bancorp Holdng

BANKING Regional - Mid-Atlantic Banks

CART Carolina Trust Bank
CCBG Capital City Bank Group
TBBK The Bancorp Bank

BANKING Regional - Midwest Banks

IFC Irwin Financial Corp

BANKING Regional - Northeast Banks

ACFC Atlantic Coast Fed Corp
BNV Beverly National Corp
CJBK Central Jersey Bancorp

BANKING Regional - Southwest Banks

EBTX Encore Bancshares Inc

BANKING Savings & Loans

CASH Meta Financial Grp Inc
ESSA Essa Bancorp Inc
ISBC Investors Bancorp Inc
ROME Rome Bancorp Inc
WIBC Wilshire Bancorp Inc

CHEMICALS Specialty Chemicals

NGBF New Generation Biofuels

CHEMICALS Synthetics

OLN Olin Corporation
SHI Shanghai Petrochemical

DIVERSIFIED SERVICES Business/Management Services

CIDM Access Integrated Tech Inc
DIET Ediets.com Inc
LPS Lender Processing Services` In
PDII Pdi Inc
SCOR Comscore Inc

DIVERSIFIED SERVICES Consumer Services

KDE 4kids Entertainment Inc

DIVERSIFIED SERVICES Education & Training Services

CPLA Capella Education Company

DIVERSIFIED SERVICES Personal Services

HI Hillenbrand` Inc.

DIVERSIFIED SERVICES Rental & Leasing Services

CFNB California First Natl Bancorp

DIVERSIFIED SERVICES Research Services

SMMX Symyx Technologies Inc

DIVERSIFIED SERVICES Staffing & Outsourcing Service

VSCP Virtualscopics Inc

DRUGS Biotechnology

CRXX CombinatoRx Inc
NXXI Nutrition 21 Inc
RGEN Repligen Corp

ENERGY Independent Oil & Gas

APU Amerigas Partners L.P.
CNR Canargo Energy Corp
SNP China Petro & Chem Ads

ENERGY Oil & Gas Pipelines

TCLP Tc Pipelines Lp

ENERGY Oil & Gas Refining & Marketing

SUF SulphCo Inc

FINANCIAL SERVICES Asset Management

DUF Duff & Phelps Corp
PZN Pzena Investment Management` I

FINANCIAL SERVICES Closed End Fund - Debt

ECF Ellsworth Conv Growth & Inc
FOF Cohen & Steers Closed-End Oppo
HYV Corporate High Yield Fund V

FINANCIAL SERVICES Diversified Investments

MDH Mhi Hospitality Corp
TCW Triplecrown Acquisition Corp

FINANCIAL SERVICES Investment Brokerage - Nationa

AMTD Ameritrade Holding Corporation

FOOD & BEVERAGE Beverages - Brewers

ABVC Ambev Companhia de Bebidas das
SAM Boston Beer Co

FOOD & BEVERAGE Beverages - Soft Drinks

KOF Coca-Cola Femsa Sa De Cv
PBG Pepsi Bottling Group Inc

FOOD & BEVERAGE Confectioners

TR Tootsie Roll Industries

FOOD & BEVERAGE Food - Major Diversified

K Kellogg Co
SDA Sadia S.A.

MANUFACTURING Small Tools & Accessories

EML Eastern Co

MANUFACTURING Textile Manufacturing

CFI Culp Inc

MATERIALS & CONSTRUCTION General Building Materials

SHW Sherwin-Williams Co
VMC Vulcan Materials Co

MATERIALS & CONSTRUCTION Heavy Construction

ICA Empresas Ica Sociedad

MATERIALS & CONSTRUCTION Manufactured Housing

SKY Skyline Corp

MATERIALS & CONSTRUCTION Residential Construction

GFA Gafisa SA ADR

MATERIALS & CONSTRUCTION Waste Management

EEI Ecology & Environment A

METALS & MINING Industrial Metals & Minerals

TCK Teck Cominco Limited

METALS & MINING Nonmetallic Mineral Mining

POT Potash Cp Saskatchewan

METALS & MINING Steel & Iron

TX Ternium SA

REAL ESTATE REIT - Diversified/Industrial

ANH Anworth Mtg Asset Corp
FPO First Potomac Realty Trust
MFA Mfa Mortgage Investments Inc

TELECOMMUNICATIONS Diversified Communication Serv

WAVE Nextwave Wireless Inc

TELECOMMUNICATIONS Processing Systems & Products

PLCM Polycom Inc

TELECOMMUNICATIONS Telecom Services - Domestic

BCE Bce Inc

TELECOMMUNICATIONS Telecom Services - Foreign

SKM Sk Telecom Co Ltd
SURW Sure West Communications

TELECOMMUNICATIONS Wireless Communications

DCM Ntt De Co Mo Adr

TRANSPORTATION Major Airlines

AMR Amr Corporation
LCC US Airways Group Inc

TRANSPORTATION Regional Airlines

ALK Alaska Air Group Inc
XJT Expressjet Holdings'a'

UTILITIES Diversified Utilities

CHG Ch Energy Group Inc
FPU Florida Public Utilities

UTILITIES Electric Utilities

DTE Dte Energy Co
EBR Centrais Eltricas Brasileir
NU Northeast Utilities
SO Southern Company The


---------------------------------------------
NEGATIVE VRs
---------------------------------------------

XXX CANADIAN STOCKS XXX Canadian Stocks

AGI.UN ALAMOS GOLD, INC.
ATD.B ALIMENTATION COUCHE-T CL B
BA.UN BELL ALIANT REGIONAL COMM FD
BAM.A BRROKFIELD ASSET MGT INC.
CG.UN CENTERRA GOLD
CMW.UN CLAYMORE S&P/TSX GLOB MINING
CS.UN CAPSTONE MINING CO
FIU FIRST URANIUM CORP NP
FM.UN FIRST QUANTUM MINERAL
FTT FINNING INTERNATIONAL
GAM.UN GAMMON GOLD INC
HBU HORIZONS BETAPRO COME
HGU.UN HORIZONS BETAPRO S&P/
HPX HIGHPINE OIL & GAS LT
IMG IAMGOLD CORP NPV
K.UN KINROSS GOLD
MGO MIGAO CORP
ML.UN MERCATOR MINERALS COM
NAE.UN NAL OIL & GAS TRUST U
POT.UN POTASH CORP
PZG.UN PARAMOUNT GOLD & SILVER
RY.UN ROYAL BANK OF CANADA
TCM.UN THOMPSON CREEK METALS CO
WJA WESTJET AIRLINES COMP
XGD ISHARES CDN S&P/TSX G
XRE ISHARES CDN S&P/TSX C
---------------------------------------------

AEROSPACE/DEFENSE Aerospace/Defense Products & S

AIM Aerosonic Corp

AUTOMOTIVE Auto Parts

ATC Cycle Country Accessories Corp
DAN Dana Corp

BANKING Money Center Banks

STI Suntrust Banks Inc

BANKING Regional - Mid-Atlantic Banks

FCNCA First Citizens Bancshr A
SCMF Southern Comm Fincl Corp
SVBI Severn Bancorp Inc

BANKING Regional - Midwest Banks

FBMI Firstbank Corp
UBCP United Bancorp Inc Oh

BANKING Regional - Northeast Banks

ASRV Ameriserv Finl Inc Cap Tr I
BARI Bancorp Rhode Island Inc
SSE Southern Connecticut Bancorp I
STBK Sterling Banks Inc

BANKING Regional - Southeast Banks

RNST Rensant Corp

BANKING Savings & Loans

CLFC Center Financial Corp
FFHS First Franklin Corp
HFFC Hf Financial Corp
JFBI Jefferson Bancshares Inc
WES Westcorp Inc Ca

COMPUTER SOFTWARE & SERVICES Information Technology Service

SYKE Sykes Enterprises Inc
TIER Tier Technologies Inc B

COMPUTER SOFTWARE & SERVICES Multimedia & Graphics Software

SKIL Skillsoft Plc Adr
WZEN Webzen Inc

COMPUTER SOFTWARE & SERVICES Technical & System Software

ANSS Ansys Inc
CIMT Cimatron Ltd

DIVERSIFIED SERVICES Personal Services

FIT Health Fitness Corporation

DIVERSIFIED SERVICES Rental & Leasing Services

ACY Aerocentury Corp
GLS Genesis Lease Limited

DIVERSIFIED SERVICES Staffing & Outsourcing Service

BBSI Barrett Business Service

DIVERSIFIED SERVICES Technical Services

WLDN Willdan Group

DRUGS Drug Related Products

NAII Natural Alternatives Int

DRUGS Drugs - Generic

SRLS Seracare Life Sciences

ELECTRONICS Printed Circuit Boards

CLS Celestica Inc

ELECTRONICS Scientific & Technical Instrum

KEI Keithley Instruments Inc
MTSC Mts Systems Corporation
NANO Nanometrics Inc

ELECTRONICS Semiconductor - Broad Line

GSIT GSI Technology Inc
IDTI Integrated Device Technology I

ELECTRONICS Semiconductor - Specialized

ARMH ARM Holdings PLC ADS
QLGC Qlogic Corp
ZRAN Zoran Corp

ELECTRONICS Semiconductor Equipment & Mate

MKSI Mks Instruments Inc

ENERGY Independent Oil & Gas

BRN Barnwell Industries Inc
DMLP Dorchester Minerals Lp

FINANCIAL SERVICES Closed End Fund - Debt

BKN Blackrock Inv Qua Mun Tr
BLJ Blackrock Nj Muni Bond Trust
BLW Blackrock Ltd Duration Incm Tr
CEV Eaton Vance Ca Muni Incm
CIK Credit Suisse Asset Mgmt
CIU iShares Lehman Intermediate Cr
CXH Colonial Inv Grade Mun

FINANCIAL SERVICES Closed End Fund - Equity

BLV Vanguard Long Term Bond ETF
CGO Calamos Global Total Return Fu
DCW Div Cap Stg Glo Realty Fd
DOD ELEMENTS Dogs of the Dow Total
ERO iPath EUR/USD Exchange Rate ET
EWV Proshares Ultra Short Japan
FAD First Trust Multi Cap Growth A

FINANCIAL SERVICES Diversified Investments

AHR Anthracite Capital Inc
DOM Dominion Rsc Blck War Tr
ESA Energy Services Acquisition Co
GHC Global Consumer Acqu Corp

FINANCIAL SERVICES Investment Brokerage - Nationa

ETFC E Trade Financial Corp

FOOD & BEVERAGE Dairy Products

LWAY Lifeway Foods Inc

FOOD & BEVERAGE Processed & Packaged Goods

THS TreeHouse Foods Inc

LEISURE Restaurants

COSI Cosi
DENN Denny's Corp
DRI Darden Restaurants

LEISURE Specialty Eateries

CBOU Caribou Coffee Company Inc
THI Tim Hortons Inc

MANUFACTURING Diversified Machinery

GDI Gardner Denver Inc

METALS & MINING Gold

ABX Barrick Gold Corp
IAG Iamgold Corp
NG Novagold Resources Inc

METALS & MINING Industrial Metals & Minerals

AZK Aurizon Mines Ltd
NANX Nanophase Technologies C
PLG Platinum Group Metal

METALS & MINING Nonmetallic Mineral Mining

AHGP Alliance Holdings GP LP
ROY International Royalty Corporat

METALS & MINING Steel & Iron

GNA Gerdau Ameristeel
HSVLY Highveld Steel & Vanadi
SHLO Shiloh Industries Inc

TRANSPORTATION Railroads

ARII American Railroad Industries I
CP Canadian Pacific Ltd

TRANSPORTATION Shipping

ALEX Alexander & Baldwin Inc
KSP K-sea Transportation Ptnr
TGP Teekay LNG Partners LP
VLCCF Knightsbridge Tankers

TRANSPORTATION Trucking

XPO Express-1 Expedited Solutions



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