Tuesday, August 13, 2013

The Morning Call-8/13/13

The Morning Call

8/13/13

The Market
           
    Technical

            The S&P (1689) closed within all major uptrends: short (1617-1773), intermediate (1548-2136) and long (715-1800) as well as remaining above the upper boundary of its recent trading range (1687).  The DJIA (15419) finished within its intermediate term uptrend (14587-19587) and long term uptrend (4918-17000).  However, as I noted yesterday, save for four trading sessions (one more than needed to confirm a change in the short term trend), it has remained within a short term trading range (14190-15550).  I am not negating the re-set to a short term uptrend (15012-16018); but if there is not a bounce soon, I will.  That will put the Averages out of sync and take the Market trend from up to indecisive.

            Volume was up slightly from an already low level; breadth was mixed with the flow of funds indicator beginning to look weak.  The VIX was down, remaining within its short term trading range and its intermediate term downtrend.

            GLD was up strong, but is still in a short and intermediate term downtrend.

            Bottom line: the Market continues to advance, but has weakened technically in the last two weeks.  If I was a trader (which I am not), this is not a Market I would want to trade.  Patience.

    Fundamental
           
            More on valuations (medium):

            The latest from John Hussman (medium):

     News on Stocks in Our Portfolios
 
Economics

   This Week’s Data

   Other

Freddie Mac spends fortune to prop up market share. Freddie Mac (FMCC.OB) is reportedly spending hundreds of millions of dollars per year to hold onto market share instead of sending the money to the Treasury. The cash is going to lenders as compensation payments to make up for Freddie's MBSs trading at a lower price than those of Fannie Mae (FNMA.OB). Despite the payments, Freddie's market share has declined to the low 30s from its long-term average of 40%

Politics

  Domestic

Your transparent government at work (medium):

  International War Against Radical Islam







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