Tuesday Morning Chartology

The Morning Call

1/21/14

The Market

           

    Technical

       Tuesday Morning Chartology

            The pin action remained sloppy all week.  While the S&P is in uptrends across all timeframes, there is a potential that a double top has been made.  To confirm that, the S&P needs to trade below the last low and break its short term uptrend.  That is a lot of work to do before seriously questioning the Market’s direction.

            The long Treasury continues to strengthen in price.  Let’s see if it can break out of its short term trading range.  That would be a major plus though it must still dispose of the intermediate term downtrend which will not be easy.

            GLD traded up through its 50 day moving average though it remains in both a short and intermediate term downtrend.  However, if it confirms the challenge of the 50 day moving average (close on Wednesday.  I had said Tuesday in the last Closing Bell, having forgot Monday the Market was closed.), our Portfolios may begin nibbling at GLD.

            The VIX continues to trade near the lower boundary of its short term trading range.  A break would be a positive for stocks.

    Fundamental

    

     Investing for Survival

            Six ways to improve your day (medium):

            http://www.fastcompany.com/3024608/how-to-be-a-success-at-everything/6-simple-habits-to-keep-you-consistently-happy-every-day

      News on Stocks in Our Portfolios

Johnson & Johnson beats by $0.04, beats on revenue

·         Johnson & Johnson (JNJ): Q4 EPS of $1.24 beats by $0.04.

·         Revenue of $18.4B (+4.8% Y/Y) beats by $450M.

Rockwell Collins, Inc. beats by $0.01, misses on revenue

·         Rockwell Collins, Inc. (COL): Q1 EPS of $0.96 beats by $0.01.

·         Revenue of $1.07B misses by $20M.

Schlumberger Limited beats by $0.02, misses on revenue

o    Schlumberger Limited (SLB): Q4 EPS of $1.35 beats by $0.02.

o    Revenue of $11.91B misses by $150M.

 

Economics

   This Week’s Data

   Other

            The latest on China’s credit problem (medium):

            http://www.zerohedge.com/news/2014-01-20/china-liquidity-fears-ease-pboc-injects-255-billion-cny-most-feb-2013

Politics

  Domestic

Income redistribution’s logical conclusion (medium and a must read):

http://www.forbes.com/sites/jeffreydorfman/2014/01/16/income-redistributions-logical-conclusion-is-communism/

Your government at work (short):

http://www.zerohedge.com/news/2014-01-21/geithner-warned-sp-chairman-us-would-retaliate-downgrade

  International War Against Radical Islam

            Krauthammer on Obama’s Afghan strategy or lack thereof (medium):

            http://www.washingtonpost.com/opinions/charles-krauthammer-how-in-good-conscience/2014/01/16/138901d4-7ee3-11e3-9556-4a4bf7bcbd84_story.html

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.