The S&P is closing in on its former high (2402), as is the Dow (21228). Volume in the last week has been low relative to the last five months and breadth is not that great. But with support from its moving averages and all major trends, I have to assume that the Averages will successfully challenge those former highs and move on the upper boundaries of their long term uptrends (23500/2620).
The long Treasury stayed within a trading range dating back to November 2016. While it is below the upper boundary of its short term downtrend, it has support at its 100 day moving average and the lower boundaries of its intermediate term trading range and its long term uptrend. Just looking at the pin action back to November (the election), its pin action is not indicative of an improving growth, higher interest rate environment.
GLD broke the lower boundary of its short term uptrend last week, resetting to a trading range. It still has support from its 100 day moving average and the lower boundary of its newly reset short term trading range. The aforementioned break is the first sign that gold investors are concerned about higher interest rates.
The dollar continued to weaken last week. It is below the upper boundary of a very short term downtrend and its 100 day moving average and is nearing the lower boundary of its short term uptrend---which is also the lower boundary of a pennant formation. Here again, this is not the pin action of investors betting on a growing economy and rising interest rates.
The VIX is hovering above the lower boundaries of its intermediate and long term trading ranges, having turned back three challenges in the two weeks. It is firmly below its 100 day moving average and its short term downtrend; but notice the large gap overhead---which almost surely be filled.
Investing for Survival
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News on Stocks in Our Portfolios
Illinois Tool Works (NYSE:ITW) declares $0.65/Share quarterly dividend, in line with previous.
This Week’s Data
Update on student and auto loans (medium):
OPEC vows to extend production cut agreement; Markets yawn (medium):
International War Against Radical Islam
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