Monday, June 22, 2015

Monday Morning Chartology

The Morning Call

6/22/15

The Market
           
    Technical

       Monday Morning Chartology

            The S&P couldn’t develop any follow through to Thursday’s moonshot.  It never reached its former high much less the upper boundary of its long term uptrend.  That is not necessarily a huge problem; but it does suggest that the bulls’ ammo is limited.  Barring an event that alters current investor perception, it probably means more churning in place.  Hence, there is little motive in my mind to be buying at this level and a good reason to be paying careful attention to those stocks at or near historical high valuations and whose companies are facing deteriorating fundamentals.

            Stock performance following June quadruple witching (short):



            The long Treasury continues to drift lower.  It remains below its 100 day moving average and below the upper boundaries of its very short term and short term downtrends.



            I am sick and tired of posting the GLD chart which offers no value added; so I am including the dollar chart which shows its recent weakness---below its 100 day moving average and the upper boundary of its very short term downtrend.



            The VIX continues to meander aimlessly in a trading range dating back to early 2013.  While it is not that different from GLD, but it is once again nearing a level (circa 12) that would represent good value as portfolio insurance.



    Fundamental
   
            The latest on the EU/Greek bail out talks (medium):


Economics

   This Week’s Data

            The May Chicago national activity index came in at -.7 versus the April reading of -.15.

   Other

            More on student loans (medium and a must read):

            Cities and states shun Moody’s because it is ‘too tough’ in its ratings (medium):

            Inconsistencies at the IMF (medium):

            A different take on the current economic expansion (short):

Politics

  Domestic

Quote of the day (short):

Monday morning humor (short):

  International War Against Radical Islam







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