www.toddmarketforecast.com
Todd Market Forecast for Tuesday. June 7, 2011
Available Mon- Friday after 6:00 P.M. Eastern, 3:00 Pacific.
DOW - 19 on 500 net advances
NASDAQ COMP - 1 on 650 net advances
SHORT TERM TREND Bullish
INTERMEDIATE TERM TREND Bearish
The market was up nicely intraday on last Tuesday, the Dow was higher by about 90 points, then Mr. Bernanke began to speak and it was all downhill from there.
The Fed chairman seemed befuddled by a question from JP Morgan CEO, Jamie Dimon who asked if he could predict that impact of all the new regulations in the pipeline. That may have caused some bids to be pulled.
But the market is so very oversold, that the odds strongly favor a multi day bounce. We can see this in the chart below of the Composite Gauge, reported every night. These methods are very effective, but like any approach, the success rate is not 100%. If it were, I wouldn’t have to write a newsletter.
The dollar was lower and this probably helped silver, copper and crude oil to gains. Strangely, gold lost a bit. Bonds were down a bit more.
BOTTOM LINE:
Our intermediate term systems are on a sell signal.
System 2 traders are long the E-mini from 1295.75 and the SSO from 51.08. We generated yet another buy at the close, but just like yesterday, let’s just hold on to what we have. Keep the above positions on through tomorrow.
System 7 traders are long the SPY at 134.80. Let’s hold without at stop for now.
NEWS AND FUNDAMENTALS:
There were no important economic news on Tuesday. On Wednesday we get the Fed Beige Book and oil inventories.
OTHER MARKETS
We’re on a buy for bonds as of May 5.
We’re on a sell for the dollar and a buy for the euro as of May 27.
We’re on a buy for gold as of May 24.
We’re on buy for silver as of May 24.
We are on a sell for crude oil as of May 5.
We’re on a sell for copper as of May 5.
We are long term bullish for all major world markets, including those of the U.S., Britain, Canada, Germany, France and Japan.
STEPHEN TODD
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.
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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