The Morning Call
The Market
Technical
The
S&P (1689) closed within all major uptrends: short (1617-1773),
intermediate (1548-2136) and long (715-1800) as well as remaining above the
upper boundary of its recent trading range (1687). The DJIA (15419) finished within its
intermediate term uptrend (14587-19587) and long term uptrend
(4918-17000). However, as I noted
yesterday, save for four trading sessions (one more than needed to confirm a
change in the short term trend), it has remained within a short term trading
range (14190-15550). I am not negating
the re-set to a short term uptrend (15012-16018); but if there is not a bounce
soon, I will. That will put the Averages
out of sync and take the Market trend from up to indecisive.
Volume
was up slightly from an already low level; breadth was mixed with the flow of
funds indicator beginning to look weak.
The VIX was down, remaining within its short term trading range and its
intermediate term downtrend.
GLD
was up strong, but is still in a short and intermediate term downtrend.
Bottom
line: the Market continues to advance, but has weakened technically in the last
two weeks. If I was a trader (which I am
not), this is not a Market I would want to trade. Patience.
Fundamental
More
on valuations (medium):
The latest from
John Hussman (medium):
News on Stocks in Our Portfolios
Economics
This Week’s Data
Other
Freddie Mac spends fortune to prop
up market share. Freddie Mac (FMCC.OB) is reportedly spending hundreds of millions of dollars
per year to hold onto market share instead of sending the money to the
Treasury. The cash is going to lenders as compensation payments to make up for
Freddie's MBSs trading at a lower price than those of Fannie Mae (FNMA.OB). Despite the payments, Freddie's market share has
declined to the low 30s from its long-term average of 40%
Politics
Domestic
Your transparent
government at work (medium):
International War Against Radical Islam
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