Monday, October 27, 2014

Monday Morning Chartology

The Morning Call

10/27/14

The Market
           
    Technical

       Monday Morning Chartology

            The S&P is in the midst of a challenge to its short term downtrend.  A close above the upper boundary of this trend today will re-set that trend to a trading range (by the way, the Dow finished above the upper boundary of its short term downtrend on Friday; and if that holds through tomorrow night, it too will re-set to a trading range).  The S&P ended within an intermediate term trading range, a long term uptrend and above its 50 day moving average.


            The long Treasury traded down last week, breaking its very short term uptrend and re-setting to a trading range.  It remains within a short term uptrend, an intermediate term trading range and above its 50 day moving average.



            GLD broke below the lower boundary of its very short term uptrend and confirmed the break.  It re-set to a trading ranges.  GLD remains within short and intermediate term downtrends and below its 50 day moving average.



            The VIX fell but stayed within its short term uptrend, intermediate term downtrend and above its 50 day moving average.



    Fundamental
 
            The Markets have a lot to digest this week.  First is the Sunday release of the ECB bank stress test.  The following three articles all address this issue. Given that this will be on everyone’s minds, they are must reads:

            25 banks fail ECB stress test (medium):
            http://www.zerohedge.com/node/496210

            And the scariest number in this report (medium):

            More disturbing incompetence by the ECB (medium):

            The FOMC meets Tuesday and Wednesday this week; this is the meeting where QE is supposed to come to a halt.  Even if it does, my guess is that the language in the statement following the meeting and the minutes will be so dovish, it will make me want to puke.

            German confidence index falls.

       Investing for Survival

            How to ruin your life (medium):

      News on Stocks in Our Portfolios
 
Economics

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  International War Against Radical Islam








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