Monday, May 12, 2014

Monday Morning Chartology

The Morning Call

5/12/14

The Market
           
    Technical

     Monday Morning Chartology

            The S&P bounced around for most of the week.  It remains in uptrends in across all timeframes; however, it continues to build a head and shoulders formation.  Stocks in general are riddled with divergences too numerous to detail---and yet the beat goes on.



            The long Treasury took a rest last week, though it remains in its short term uptrend, above its 50 day moving average and within its intermediate term downtrend.  The question, of course, is this really just a rest and, hence, is the bond market still trying to tell us something or is it the beginning of a readjustment back to more normal levels.  I will take my key from the lower boundary of the short term uptrend.



            GLD remains an ugly duckling.  It is in short and intermediate term downtrends and below its 50 day moving average.



            The VIX is nearing the lower boundary of its short term trading range, is below its 50 day moving average and is within an intermediate term downtrend.  If it breaks through the lower boundary of its short term trading range, it would be a positive sign for stocks.



            Update on ‘the best stock market indicator ever’:

            Weekend update from Chris Kimble (short):

    Fundamental
    
            ***overnight, the March Japanese trade surplus plunged (not supposed to happen in period of dramatic monetary easing), Chinese officials indicated more market reforms were on the way and an ECB official implied that more was needed to help the EU economy than just lower interest rates (Japanese QE lite?)

            Latest from Ukraine:

       News on Stocks in Our Portfolios
 
Economics

   This Week’s Data

   Other

            US tax rates versus other developed countries (short):

Politics

  Domestic

  International War Against Radical Islam







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