The Morning Call--Monday Morning Chartology

The Morning Call

11/12/12

The Market

           

    Technical

       Monday Morning Chartology

             The S&P finished the week below its short term trading range for the third day.  If it does so again today, the break of its lower boundary will be confirmed.  The short term trend will then re-set to a downtrend.  It also closed below its 200 day moving average (wiggly red line) for the second day.  Finally, it remains above the lower boundary of its intermediate term uptrend.

            GLD remains above the lower boundaries of its short term uptrend and its intermediate term trading range.  It also finished above the interim resistance level but failed to penetrate its 50 day moving average (wiggly red line)---a break above this resistance line will likely lead our Portfolios to begin to re-establish their trading positions in GLD.

            Chinese gold imports surge (short):

            http://www.zerohedge.com/news/2012-11-11/chinese-gold-imports-surge-september-ytd-total-surpasses-official-indian-holdings

    

         The VIX remains trapped in two narrowing zones between the upper boundary of its short term downtrend and (1) the lower boundary of a very short term uptrend and (2) the lower boundary of its intermediate term trading range.

    Fundamental

 

            Update on third quarter’s earnings ‘beat’ rate (short):

            http://www.bespokeinvest.com/thinkbig/2012/11/9/earnings-beat-rate-weakens.html