Monday, March 30, 2015

Monday Morning Chartology

The Morning Call

3/30/15

The Market
           
    Technical

       Monday Morning Chartology

            The S&P rose Friday, enough to close above its 100 day moving average but not enough to end above the lower boundary of its very short term uptrend; thereby negating that trend.  It remains within uptrends across all timeframes.  To keep the near term technical picture muddled, the Dow closed right on the lower boundary of its very short term uptrend, erasing the break and leaving within that trend.  However, it could not regain its 100 day moving average.



            The long Treasury rallied on Friday, but not enough to regain the lower boundary of a very short term uptrend; thus, negating that trend. The good news is that Wednesday’s high was higher than the previous bounce which seems to indicate that the decline off the January high is over.   It remained within a short term trading range, intermediate and long term uptrends and above its 100 day moving average.



            GLD was down on Friday, remaining within short and intermediate term trading ranges.  Notice it touched and then retreated from its 100 day moving average.  GLD still has a lot of work to do before its chart gets healthy.



            The VIX fell Friday, but ended within a short term trading range, an intermediate term downtrend, below its 50 day moving average and within a developing pennant formation.  I still think it cheap insurance for traders.



    Fundamental
   
            Update from Greece (medium):

            ***overnight ,a rumor suggested that the Bank of China was prepared to lower interest rates again---you know, because the first two times were so successful.  Later the rumor was denied.

       Investing for Survival

            Memories shape your reaction to the Market (medium):
  

   
      News on Stocks in Our Portfolios
 
Economics

   This Week’s Data

            February personal income rose 0.4% versus expectations of up 0.3%; personal spending increased by 0.1% versus estimates of +0.2%; the PCE deflator was +0.1%, in line.

   Other

            Signs of improvement in Europe (short):

Politics

  Domestic

  International

            What price an Iran deal?  Another example of our failing foreign policy (medium):








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