Monday Morning Chartology--6/3/13

The Morning Call

6/3/13

The Market

           

    Technical

       Monday Morning Chartology

            Despite Friday’s severe whackage, the S&P remains safely within all its major uptrends.  Nonetheless, we need to be watching the action of the ‘buy the dippers’ for a sign of how much strength lies beneath the Market.

            Friday, GLD reversed the upside break above its shortest term downtrend.  That keeps our Portfolios on the sideline.  It also remained below the lower boundary of its intermediate term downtrend but above the developing double bottom and the lower boundary of its long term uptrend.

            Tips and gold (short):

            http://blog.yardeni.com/2013/06/tips-gold-excerpt.html

            The VIX spiked 12% on Friday.  However, it remains within both its short term and intermediate term downtrends---although it is approaching the upper boundary of its short term downtrend.

            Update on ‘the best stock market indicator ever’:

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

    Fundamental

         

            Cheap money and stock buybacks (short):

            http://blog.stocktradersalmanac.com/post/The-Virtuous-Share-Buyback-Cycle

            The latest from Stephen Roach (medium):

            http://www.zerohedge.com/news/2013-06-01/stephen-roach-american-consumer-not-okay

            And this discussion on corporate profits for the bulls (medium):

            http://scottgrannis.blogspot.com/2013/05/corporate-profits-are-still-strong-and.html

      News on Stocks in Our Portfolios courtesy of Seeking Alpha

 

P&G combines revamp with succession plan. Procter & Gamble (PG) is reportedly amalgamating its CEO succession plans with a reorganization of its brands into four sectors, although the final structure is not yet clear. P&G intends to promote executives to head the sectors as Presidents, with the company hoping that they'll make good candidates to replace recently returned CEO A.G. Lafley when he re-retires. Lafley is expected to stay for at least 2-3 years.

Boeing receives major order for 737 jets. Boeing (BA) has received an order for 60 737 MAX aircraft from British holiday company TUI Travel (TUIVY.PK) in a deal worth $6.1B at list prices, with the booking also including an option for another 90 planes. The order is so large that it will require the consent of TUI's shareholders. The jets will use LEAP-1B engines, which are made by CFM International, the joint venture partly owned by GE (GE).

Economics

   This Week’s Data

   Other

            April retail sales revised (short):

            http://www.zerohedge.com/news/2013-05-31/april-core-retail-sales-were-just-revised-100-beat-miss

            Rail traffic is sluggish (short):

            http://pragcap.com/rail-traffic-remains-sluggish-2

            Fed policy helps the rich (medium):

            http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/29/the-feds-been-keeping-the-economy-afloat-thats-the-problem/

Politics

  Domestic

  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