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VIDEOThe Power of the Monthly Pivots
By
Richard Suttmeier
Sep 03, 2010 8:40 am
Ten-Year US Treasury is above a new monthly pivot, which is a sign favoring stocks.
Editor's Note: This article was written by Richard Suttmeier, chief market strategist at ValuEngine.com, which is a fundamentally-based quant research firm in Princeton, New Jersey, that covers more than 5,000 stocks every day.
The yield on the 10-Year US Treasury is above my new monthly pivot, which is a sign favoring stocks. The euro could be the negative divergence for stocks as my quarterly value level lags at 1.2167. The major equity averages straddle monthly pivots at 10,164 on Dow Industrials, 1074.9 S&P 500, 2196 Nasdaq, 4364 Dow Transports, and 652.82 on Russell 2000.
10-Year Note -- (2.628) My weekly value level is 2.648 with monthly, quarterly and daily pivots at 2.562, 2.495, and 2.514 and my semiannual risky level at 2.249. My annual value levels are 2.813 and 2.999. Note that the decline in yield is no longer overdone on the daily chart. (CBOE Interest Rate 10-Year T-Note (^TNX) last traded at 2.63.)
Comex Gold -- ($1253.10) Semiannual, weekly, quarterly, and annual value levels are $1218.7, $1211.5, $1140.9, and $1115.2 with daily, semiannual, and monthly risky levels at $1259.9, $1260.8, and $1263.8. Note that gold is still overbought on its daily chart.
Nymex Crude Oil -- ($74.99) My daily pivot is $74.32 with a monthly pivot at $74.45, and annual, weekly, and semiannual risky levels at $77.05, $81.35, and $83.94. Note that crude oil is no longer oversold on the daily chart profile.
The Euro -- (1.2822) Daily, quarterly, and monthly value levels are 1.2799, 1.2167, 1.1721, and 1.1424 with weekly and semiannual risky levels at 1.3170 and 1.4733. Note that the euro is no longer oversold on its daily chart. (CurrencyShares Euro Trust (FXE) last traded at 127.77.)
Daily Dow -- (10,320) Daily and quarterly value levels are 10,086 and 7,812 with a monthly pivot at 10,164, and annual, semiannual, weekly, and annual risky levels at 10,379, 10,558, 10,904, and 11,235. My annual risky level at 11,235 was tested at the April 26 high of 11,258.01. The 50-day simple moving average is 10,261 with the 21-day at 10,300, and 200-day simple moving average as resistance at 10,451.
The yield on the 10-Year US Treasury is above my new monthly pivot, which is a sign favoring stocks. The euro could be the negative divergence for stocks as my quarterly value level lags at 1.2167. The major equity averages straddle monthly pivots at 10,164 on Dow Industrials, 1074.9 S&P 500, 2196 Nasdaq, 4364 Dow Transports, and 652.82 on Russell 2000.
10-Year Note -- (2.628) My weekly value level is 2.648 with monthly, quarterly and daily pivots at 2.562, 2.495, and 2.514 and my semiannual risky level at 2.249. My annual value levels are 2.813 and 2.999. Note that the decline in yield is no longer overdone on the daily chart. (CBOE Interest Rate 10-Year T-Note (^TNX) last traded at 2.63.)
Comex Gold -- ($1253.10) Semiannual, weekly, quarterly, and annual value levels are $1218.7, $1211.5, $1140.9, and $1115.2 with daily, semiannual, and monthly risky levels at $1259.9, $1260.8, and $1263.8. Note that gold is still overbought on its daily chart.
Nymex Crude Oil -- ($74.99) My daily pivot is $74.32 with a monthly pivot at $74.45, and annual, weekly, and semiannual risky levels at $77.05, $81.35, and $83.94. Note that crude oil is no longer oversold on the daily chart profile.
The Euro -- (1.2822) Daily, quarterly, and monthly value levels are 1.2799, 1.2167, 1.1721, and 1.1424 with weekly and semiannual risky levels at 1.3170 and 1.4733. Note that the euro is no longer oversold on its daily chart. (CurrencyShares Euro Trust (FXE) last traded at 127.77.)
Daily Dow -- (10,320) Daily and quarterly value levels are 10,086 and 7,812 with a monthly pivot at 10,164, and annual, semiannual, weekly, and annual risky levels at 10,379, 10,558, 10,904, and 11,235. My annual risky level at 11,235 was tested at the April 26 high of 11,258.01. The 50-day simple moving average is 10,261 with the 21-day at 10,300, and 200-day simple moving average as resistance at 10,451.
No positions in stocks mentioned.
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