Monday Morning Chartology
Stocks had a wild ride last week. In the end little changed technically speaking, though you will note that the S&P is still forming a series of lower highs,
Bonds, typically a safe haven from volatility, weren’t spared in last Thursday and Friday’s yo yo formation. As I noted, it was largely a function of a huge long dollar/long bond trade expecting a dramatic easing by the ECB which didn’t happen on Thursday but was walked back on Friday.
Gold roared on Friday, for what reason I don’t know. Its chart remains sickly with almost no redeeming features outside of Friday’s pop. Lots more work to be done.
The volatility of last Thursday’s and Friday’s pin action is apparent. The challenge of the VIX’s upper boundary of its short term downtrend was short lived. In the 12-13 level, I continue to believe that it represents attractively priced portfolio insurance.
Investing for Survival
Sticking with your asset allocation:
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International War Against Radical Islam
Tensions escalate in Syria (medium):
And Iraq (medium):