Monday Morning Chartology

The Morning Call

9/16/13

The Market

           

    Technical

     Monday Morning Chartology

            The S&P remains in a short term uptrend.  However, it has yet to successfully penetrate the upper boundary of its former short term trading range (1576-1687).  It does raise the question, was the late August break below the lower boundary of the short term uptrend for real and the current trend is really a trading range.  Watch 1687.  ***With stocks up big pre-Market opening, it appears that this question has been answered.

            GLD continues to frustrate me.  It clearly didn’t hold the very short term uptrend.  It finished within short term and intermediate term downtrends.

            The long Treasury has crept back above the upper boundary of its short term downtrend.  Note also that the last low was higher than the previous low---a sign that TLT may have put in a low.  The next couple of trading days will be important in determining direction.

            VIX still provides little help in getting a fix on Market direction, meandering within a short term trading range.

    Fundamental

    

            Overnight, the EU and Indian inflation rates came higher, in India’s case, much higher than expected.  Of course, the big news is Larry Summers withdrawing his name for consideration as Fed chief.  Since he was perceived as being more hawkish on monetary policy than Yellen, the Markets’ initial reaction is to rejoice in the light of a less aggressive unwinding of QE Infinity

            Could they be wrong (medium):

            http://advisorperspectives.com/dshort/guest/Franz-Lischka-130916-Impact-of-Change-in-Fed-Chair.php

     

      News on Stocks in Our Portfolios

 

            Boeing moves closer to securing South Korean contract:

            http://www.reuters.com/article/2013/09/16/us-korea-fighter-idUSBRE98F02P20130916

Economics

   This Week’s Data

            The September New York Fed manufacturing index came in at 6.29 versus expectations of 9.0.

   Other

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 Investing For Survival is to help other investors build wealth and benefit from the investing lessons he learned the hard way.