The Morning Call--Tuesday Morning Chartology

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The Morning Call

1/22/13

The Market

           

    Technical

      Tuesday Morning Chartology

            The S&P closed above the 1474 resistance level for the second day, though the DJIA has yet to confirm that break out.  The next resistance is marked by the upper boundary of its short term uptrend (1490) and 1576.  Meanwhile it remains firmly within its short and intermediate term uptrends.

            GLD remains within its short term downtrend and its intermediate term trading range.  However, it is trading above the upper boundary of the very short term downtrend

and the lower boundary of a very short term uptrend---a glimmer of hope.

            The VIX plunged of Friday, keeping it well within an intermediate term downtrend---a boost for stocks.

            Update on ‘the best stock market indicator ever’:

            http://advisorperspectives.com/dshort/guest/John-Carlucci-Best-Indicator-Ever-Update.php

    Fundamental

    

            The latest from Howard Marks (long but a must read):

            http://advisorperspectives.com/commentaries/oaktree_011713.php

            The latest from Van Hoisington (medium and also a must read):

            http://advisorperspectives.com/commentaries/hoisington_011813.php

            ***overnight the Bank of Japan formally announces its new ‘double down, all in, print till we run out of trees’ monetary policy.

            http://www.zerohedge.com/news/2013-01-21/japan-unveils-extreme-and-totally-expected-fiscalmonetary-policy-plan

                The last time Japan tried this strategy (medium):

            http://www.zerohedge.com/news/2013-01-21/japans-deja-vu-chain-events-stagnation-monetization-devaluation-stabilization-retali

                And these gems from deputy PM Aso (medium):

            http://www.zerohedge.com/news/2013-01-21/japans-deputy-prime-minister-has-modest-proposal-edlerly-hurry-and-die

            Europe in a world of depreciating yen and dollar (medium):

            http://www.zerohedge.com/news/2013-01-21/strange-case-diverging-spanish-exports

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.