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Declining MOJO for Gold, Oil and Euro should weigh on stocks.

|Includes: DIA, DUG, GLD, iShares 20+ Year Treasury Bond ETF (TLT)
The yield on the 10-Year note is in a sideways pattern that anticipates the Fed’s QE2 initiatives. My monthly pivot is 2.555 with my quarterly and semiannual risky levels at 2.265 and 2.249. Gold failed to hold my monthly pivot at $1343.7 and my quarterly value level is at $1306.4. Crude oil is between my annual pivot at $77.05 and my semiannual and monthly risky levels at $83.94 and $84.74. The euro tried to rally to this week’s risky level at 1.4074 but fell short. My quarterly value level is 1.3318. The Dow remains overbought and traded above its April 26th closing high of 11,205.03 on Thursday but did not close above that Dow Theory milestone. Dow Transports did not come close to its May 3rd at 4806.1 and a mixed close would not have been a Dow Theory Buy Signal. Thursday’s high on the Dow Industrial Average at 11,213.54 was only 21.46 points below my annual risky level at 11,235 with my semiannual risky level is 11,296.
 
10-Year Note – (2.536) Daily, weekly, annual and annual value levels are 2.604, 2.620, 2.813 and 2.999 with a monthly pivot at 2.555, and quarterly and semiannual risky levels at 2.265 and 2.249.
 
Courtesy of Thomson / Reuters
 
Comex Gold – ($1325.5) Quarterly, semiannual and annual value levels are $1306.4, $1260.8, $1218.7 and $1115.2 with my monthly pivot at $1343.7, and daily and weekly risky levels at $1351.4 and $1373.6.
 
Courtesy of Thomson / Reuters
 
Nymex Crude Oil ($80.63) My annual value level is $77.05 with daily and weekly pivots at $81.29 and $82.38, and semiannual and monthly risky levels at $83.94 and $84.74.   
 
 
Courtesy of Thomson / Reuters
 
The Euro – (1.3920) My quarterly value level is 1.3318 with daily and weekly risky pivots at 1.4004 and 1.4060. My monthly value level is 1.2342 with semiannual risky level at 1.4733.
 
Courtesy of Thomson / Reuters
 
Daily Dow: (11,147) Monthly, semiannual, annual and quarterly value levels are 10,857, 10,558, 10,379 and 8,523 with a daily pivot at 11,167, and weekly, annual and semiannual risky levels at 11,229, 11,235, and 11,296. My annual risky level at 11,235 was tested at the April 26th high of 11,258.01.
 
Courtesy of Thomson / Reuters
 
Tracking Dow Theory
 
A Dow Theory Buy Signal occurs with Dow Transports closing above its May 3rd closing high at 4,806.1, and the Dow Industrials closing above its April 26th closing high at 11,205.03.
  • The Dow Industrials traded above 11,205.03 on Thursday, but did not close above that milestone.
  • The Dow Transports lagged well behind 4,806.1 blocked by weekly and monthly risky levels at 4779 and 4797.
 
ValuEngine Sector Valuations
 
Five of eleven sectors are overbought led by Basic Industries by 6.6%, energy by 8.3% and public utilities by 3.9%.
 
That’s today’s Four in Four. Have a great day.
 
Richard Suttmeier
Chief Market Strategist
ValuEngine.com
(800) 381-5576
 
Send your comments and questions to Rsuttmeier@Gmail.com. For more information on our products and services visit www.ValuEngine.com
 
As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.com. I have daily, weekly, monthly, and quarterly newsletters available that track a variety of equity and other data parameters as well as my most up-to-date analysis of world markets. My newest products include a weekly ETF newsletter as well as the ValuTrader Model Portfolio newsletter. You can go HERE to review sample issues and find out more about my research.
 
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