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
TheStreet Open House

The Major Equity Averages Face Weekly Key Reversals

My recommended investment strategy in this market environment has been to sell strength to risky levels and reduce exposures to the stock market by at least 50%. This is a contrarian opinion as most buy-side and sell-side strategists on financial TV are telling investors that stocks remain cheap and to buy dips. I strongly disagree as there is nothing wrong with profit-taking.

Here's my weekly review of the key levels for the U.S. capital markets:

The Yield on the 10-Year Treasury note (1.984%) -- The weekly chart still favors higher yields, but my annual pivot at 1.981% was a magnet again this week. My annual and semiannual value levels are 2.476% and 3.063% with the annual pivot at 1.981% and a monthly risky level at 1.843%.

Comex Gold ($1578.5) -- The weekly chart remains negative with a close today below the five-week MMA at $1644.7. The 200-week simple moving average (SMA) is $1,410.8 with my annual pivot at $1,599.9 and semiannual, monthly, quarterly and annual risky levels at $1,719.2, $1,793.8, $1,802.9 and $1,852.1.

Nymex Crude Oil ($93.11) -- The weekly chart shifts to negative on a close today below the five-week MMA at $93.99. The 200-week SMA is $86.29 with monthly and quarterly pivots are $96.21 and $95.84 with my annual risky levels at $115.23 and $115.42.

The euro vs the dollar (1.3189) -- The weekly chart stays negative on a close today below the five-week MMA at 1.3292. The 200-week SMA is a resistance at 1.3530. My semiannual value level is 1.2797 with my annual and quarterly pivots at 1.3257 and 1.3334 and monthly pivot at 1.3570.

The Dow Industrial Average (13,881) -- Quarterly and annual value levels are 13,668, 12,696 and 12,509 with monthly and semiannual risky levels at 14,132 and 14,323. The October 2007 high is 14,198.10 with the all time closing high is 14,164.53 set on October 9, 2007. A close below last week's low at 13,906.73 defines a weekly key reversal.

The S&P 500 (1502.4) -- Quarterly and annual value levels are 1431.1 and 1348.3 with monthly and semiannual risky levels at 1542.9 and 1566.9. These major risky levels are below the October 2007 high at 1576.09. A close below last week's low at 1513.63 defines a weekly key reversal.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • 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