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Wednesday Jan 23rd, 2013 Newsletter - free

 

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Table Of Contents:

1. General Market Analysis/Comment, Big Picture Analysis, and Comments on AAPL

2. Precious Metals: Gold, Silver, GDX Swing System and GDX Analysis

3. BOIL Natural Gas ETF and DBA

4. Trade Ideas, New ones and coverage on previous ones


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Week of January 21 - January 25
Date ET Release For Actual Briefing.com Forecast Briefing.com Consensus Prior Revised From
Jan 22 10:00 Existing Home Sales Dec 4.94M 5.10M 5.10M 4.99M 5.04M
Jan 23 07:00 MBA Mortgage Index 01/19 7.0% NA NA 15.2%
Jan 23 09:00 FHFA Housing Price Index Nov 0.6% NA NA 0.6% 0.5%
Jan 24 08:30 Initial Claims 01/19 365K 355K 335K
Jan 24 08:30 Continuing Claims 01/12 3200K 3200K 3214K
Jan 24 10:00 Leading Indicators Dec 0.5% 0.5% -0.2%
Jan 24 10:30 Natural Gas Inventories 01/19 NA NA -148 bcf
Jan 24 11:00 Crude Inventories 01/19 NA NA -0.951M
Jan 25 10:00 New Home Sales Dec 360K 385K 377K


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Stock Earnings Calender:

Click here for a list of Stocks that are reporting Earnings

**Generally we never hold a position into earnings since the risk/reward is too great


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As you know, the market has come all way since the March 2009 bear market bottom where the S&P 500 hit a devils low of 666, today it stands just shy of 1500!


Here's a monthly chart of the S&P 500, potential targets for this year are 1550 - 1600 or the upper trendline (which also corresponds to roughly 1600.  However my long term thoughts remain the same, I still consider this bull market, which began in Mar 09 as a cyclical bull market in a longer term Secular Bear market which began in 2000.  Secular markets tend to last 16 - 18 years on average, this secular bear market is nearing 13 years now, so historically it's too short to be over.  I think the market will be due for another down cycle perhaps later  this year or next year - again one target could be the upper trendline of this monthly chart.


here's a history of secular markets, as you can see, they last more than 13 years:


2000 - Present, Secular Bear Market, 13 years so far


1982 - 2000 - Secular Bull Market, lasted 18 years


1966 - 1982 - Secular Bear Market, lasted 16 years


1948 - 1966 - Secular Bull Market, lasted 18 years


1929 - 1948 - Secular Bear Market, lasted 19 years


1920 - 1929 - Secular Bull Market, lasted only 9 /1/2 years (shortest one)


1904 - 1920 - Secular Bear Market, lasted 16 years


So as you can see from this history, I would expect this current secular bear market to not be over yet, I think we have one more down cycle to go through. I don't think the 2009 lows will be tested at all, however a 50% - 61.8% retracement could occur, then perhaps after it's over we'll be ready for the next secular bull market to begin in late 2016 or 2017.  See my chart.


Long Term SPX system from 1961:

 

Of course whatever the market does, my long term long only system will catch the major trends, this system catches the majority of bull market moves and is out during bear markets.  Notice that this system when to cash in Jan 2008 well before the big decline in 2008, then got back long in April 2009 and is still long


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