The Morning Call--Monday Morning Chartology

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The Morning Call

12/10/12

The Market

           

    Technical

      Monday Morning Chartology

            The S&P remains within its short term trading range (brown lines) and its intermediate term uptrend (purple lines).  As I have noted, it continues to be stuck in a very narrow trading range (1395-1424).  A break of one these boundaries will likely set the direction of the Market in the short term.  On Friday, it traded above its 50 day moving average (wiggly red line).  Our time and distance discipline is now operative.  If the S&P confirms the break of this trend line, it would suggest a move to the upside.

            GLD remains below its 50 day moving average (wiggly red line)---not positive.  It is also trading above the lower boundaries of its short term uptrend and the intermediate term trading range.

            The VIX finished the week below its 50 day moving average (wiggly red line)---a positive.  It continues to trade within the ever narrowing zone between the upper boundary of its short term downtrend and the lower boundary of its intermediate term trading range.

    Fundamental

    

            Update on the Greek bond buyback (medium):

            http://www.zerohedge.com/news/2012-12-09/greek-debt-buyback-participation-still-short-target-after-deadline

            The shape of the next crisis (medium and today’s must read):

            http://www.zerohedge.com/news/2012-12-09/shape-next-crisis-preview-elliotts-paul-singer

            What we should have done (medium):

            http://www.zerohedge.com/news/2012-12-08/guest-post-icelandic-success-story

           News on Stocks in Our Portfolios

 

Economics

   This Week’s Data

   Other

            Consumer debt is still too high (medium):

            http://www.zerohedge.com/news/2012-12-07/guest-post-consumer-debt-still-long-way-go

            Great quote from Café Hayek (short):

            http://cafehayek.com/2012/12/quotation-of-the-day-483.html

Politics

  Domestic

More revolving door crony capitalism (short/medium):

http://www.zerohedge.com/news/2012-12-07/meet-liz-fowler-architect-obamacare-jumps-ship-johnson-johnson

  International War Against Radical Islam

Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.