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Saturday, September 26, 2009

Mark Leibovit Remains Bullish on Gold and Stocks

Bob Brinker is not the only stock market bull on Wall Street. Mark Leibovit, chief market strategist for vrtrader.com, was on Nightly Business Report last night for an interview with Paul Kangas where he discussed his bullish outlook for stocks. Leibovit is also bullish on Gold and Silver.

Excerpts:

KANGAS: You have been correctly bullish on the stock market in general and gold in particular. We've had a heck of a run on the stock market since March with the Dow soaring from 6500 to 9800 level. Is it time for some profit taking in stocks here?
LEIBOVIT: It appears so. We've been in an upward channel since March, looking at the Dow industrials. There's a risk perhaps of a pullback to 9,000, 8900, maybe, but it's still an upward channel. And the work basically says we're in a bull market here which could last a lot longer and go a lot higher. We're finding that wall of worry Paul and some of the technical work we're doing, particularly a reverse head and shoulders pattern that we put together here on the chart shows potential even as high as 11,003. Originally I was talking 10,300, which was half of that 7700 point decline that we saw from the beginning of the bear market. So any pullback here in October, November, would be a buy for a move to that higher level I think some time into next year.


KANGAS: All right. So still bullish long term on stocks. Now, you have been extremely bullish on gold, predicting last April it would go from around a $900 per ounce level then, to $1,000 an ounce which it did early this week. Good call. Where do gold prices head now?

LEIBOVIT: Well, we've only started, Paul. There's also reverse head and shoulders measurement in gold up to about $1300 and you know I have a bigger picture number up at $3,000. But our annual forecast model for gold pretty much pinned it all year. It was calling for a high here in the September time frame and then maybe a little pullback. I think that's what we're starting to see now a little bit of a correction in the gold. And then I see it breaking through and the 1,000 level is going to become the floor and we're going to start moving up and up into those higher levels I think into next year.
Click chart courtesy of stockcharts.com for full size image

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