The Morning Call
7/28/14
The Market
Technical
Monday Morning Chartology
No
break in the straight up trend in the S&P.
It remains above its 50 day moving average and within uptrends in all
major timeframes; though it is nearing the upper boundary of its long term
uptrend. I should note that at the close
Friday, the Dow is nearing its 50 day moving average.
Last
week, the long Treasury broke above the upper boundary of its short term
trading range and reset to a short term uptrend. On Thursday, it was hammered below that
former upper boundary; then recovered on Friday. That it recovered is a plus (if you are a
bond bull) but it fails to assuage the confusion TLT has generated over the last
couple of weeks. The significance of
this pin action lies in the message in could carrying about the economy. A ramp up suggests either (1) slower growth,
or worse, may be in the offing, or (2) it is being used as a ‘flight to safety’
trade.
GLD
continues to trade aimlessly above its 50 day moving average and within a short
term trading range and an intermediate term downtrend.
The
VIX bounced around all week; but made little progress on direction. It remains below its 50 day moving average
and within short and intermediate term downtrends. As such, it continues to give a positive bias
to stock prices.
Fundamental
David
Einhorn on the M&A bubble (medium):
More
on the new SEC imposed ‘gates’ on money market funds (medium):
Subscriber Alert
In
our latest fundamental review of CME Group (CME), it failed to meet the
criteria for inclusion in the Dividend Growth Universe. Hence, it is being Removed and, at the Market
open, the Dividend Growth Portfolio will Sell its position in CME.
Investing
for Survival
7
truths that investors can’t accept (medium):
http://welcometokindergarten.tumblr.com/post/92630360392/seven-truths-investors-simply-cannot-accept
News on Stocks in Our Portfolios
o
Cummins (NYSE:CMI):
Q2 EPS of $2.43 beats by $0.04.
o
Revenue of $4.84B (+6.8% Y/Y) beats
by $10M.
Economics
This Week’s Data
Other
Lending
in Europe continues weak (short):
Politics
Domestic
More government incompetence;
this time in Obamacare (medium):
International
In
response to Obama’s request for sanctions, the EU issues a memo (medium):
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