This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pivots Still at Play in January

Stocks in this article: PHM DHI KBH TOL GOOG AAPL

Here are the pivots that continue to be magnets in January:

The Yield on the 10-Year Treasury Note (1.870%): The rise in yield held my annual value level at 1.981% on Jan. 4. Wall Street and most buy-side strategists have been advising investors to avoid U.S. Treasuries for years now. At the end of 2007 investors could have bought the 10-year note at 4.035%, and today this would be a 5-Year note which ended 2012 at 0.724%. The S&P was 1468 at the end of 2007 and 1426 at the end of 2012. My annual and semiannual value levels are 2.476% and 3.063% with the annual pivot at 1.981% and my semiannual risky level at 1.413%. Remember that QE3 and QE4 will continue until the unemployment rate falls to 6.5%.

Comex Gold ($1,687.3): My monthly pivot at $1,673.8 has been a magnet so far in January as expected. My annual value level is $1,599.9 with a monthly pivot at $1,673.8 and semiannual, quarterly and annual risky levels at $1,719.2, $1,802.9 and $1,852.1. Gold may rebound but I do not expect a re-inflation of the gold bubble. The weekly chart for gold shifts to positive with a close today above the five-week modified moving average at $1,682.3.

Nymex Crude Oil ($95.32): I expected oil to rebound to test my quarterly risky level at $95.84 and this was accomplished Thursday. My monthly value level lags at $74.23 with a quarterly pivot at $95.84 and annual risky levels at $115.23 and $115.42. Rising oil prices should not be viewed as a re-inflation of a bubble. The weekly chart has been positive since the week of Dec. 21, with the five-week MMA at $91.29 and the 200-week simple moving average at $85.20.

The Euro vs. the U.S. Dollar (1.3375): My semiannual value level is 1.2797 with annual and quarterly pivots at 1.3257 and 1.3346. A barrier to the upside is the 200-week MMA at 1.3526, as the weekly chart will become overbought next week. What most market participants do not realize is that the euro is weaker versus the dollar since ending 2007 at 1.459, which is between the June 2010 low at 1.1880 and the July 2008 high at 1.6035.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs