The Morning Call
The Market
Technical
Monday Morning Chartology
The
short term uptrend is now history. The
task now is to define the boundaries of a new short term trading range. The most apparent candidates are the former
all time high (1576) for the lower boundary and the present all time high
(1687) as the upper boundary. However,
under our trading discipline, the lower boundary won’t be set until either the
S&P penetrates the very short term downtrend or it bounces, sells off but
makes a higher low (versus 1576). The
S&P has also taken out the 50 day moving average; the wiggly red line is
the 200 day moving average---which coincides nicely with the lower boundary of
its intermediate term uptrend. ***the
morning stocks are again down around the globe,
At this moment, the S&P is set to open below 1576. A confirmed break of this support level would
have nasty implications for stocks.
GLD is a basket case technically speaking. It has plunged through the lower boundary of its long term uptrend, leaving the short term and intermediate term trends as down. As with the S&P, we must now define a new long term trading range; the problem being no clear candidates for the lower boundary. Clearly, we are a long way from re-entering this market.
The VIX has broken its short term downtrend. In this case, there is a decent candidate for a lower boundary (the support level marked by the horizontal black line). Note that there is a very short term uptrend that is still in tact; as is the intermediate term downtrend.
Update
on ‘the best stock market indicator ever’:
Fundamental
Very
interesting presentation on predicting crisis (17 minute video):
Everything
is being sold (medium):
More
from Marc Faber (medium):
The
problems facing Japan
(short):
Investing for Survival
The
downside to index investing (medium):
News on Stocks in Our Portfolios
Economics
This Week’s Data
The
Chicago Fed National Activity Index came in at -.30 versus expectations of
-.25.
Other
Update
on EU economy (medium):
Politics
Domestic
66 ways the
government is blowing Your Money (long):
GLD
is a basket case technically speaking.
It has plunged through the lower boundary of its long term uptrend, leaving the short term and intermediate term
trends as down. As with the S&P, we
must now define a new long term trading range; the problem being no clear
candidates for the lower boundary.
Clearly, we are a long way from re-entering this market.
The
VIX has broken its short term downtrend.
In this case, there is a decent candidate for a lower boundary (the
support level marked by the horizontal black line). Note that there is a very short term uptrend
that is still in tact; as is the intermediate term downtrend.
Update
on ‘the best stock market indicator ever’:
Fundamental
Very
interesting presentation on predicting crisis (17 minute video):
Everything
is being sold (medium):
More
from Marc Faber (medium):
The
problems facing Japan
(short):
Investing for Survival
The
downside to index investing (medium):
News on Stocks in Our Portfolios
Economics
This Week’s Data
The
Chicago Fed National Activity Index came in at -.30 versus expectations of
-.25.
Other
Update
on EU economy (medium):
Politics
Domestic
66 ways the
government is blowing Your Money (long):
International War Against Radical Islam
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