Monday, February 22, 2016

Monday Morning Chartology

The Morning Call

2/22/16
The Market
         
    Technical

       Monday Morning Chartology

            However you look at it, the S&P staged a great rebound last week.  The most important technical consequence was the voiding of the recent reset in the intermediate term trend back to a trading range.  In addition, the selloff following the rebound was very tame and suggests that there could be more movement to the upside.  On the other hand, the rally was unable to (1) push through the circa 1930 Fibonacci retracement level and (2) set yet another lower high.  Follow through is the key.

            NYSE short interest back at highs (short):




            The long Treasury fell sharply, challenged its very short term uptrend, and then recovered.  So the chart remains strong and points to investors focus on the risk off trade (recession).



            After having been so bad for so long, GLD is getting its groove on.  It held very well in last week’s risk on rally.



            Even though the VIX sold off in last week’s risk on rally, it nonetheless remains in a very short term uptrend, a short term trading range and above its 100 day moving average.



    Fundamental

            Sovereign wealth funds could sell $500 billion in securities this year (short):

 ***overnight, the February EU composite PMI hit a fourteen month low, with French and German readings in negative territory; the February Japanese flash PMI came in at 50.2 versus expectations of 52.0; the Bank of China continued to inject liquidity into the banking system.


       Investing for Survival
   
            How to escape the market meltdown mentality (medium):
           
    News on Stocks in Our Portfolios
 
Economics

   This Week’s Data

            The January Chicago Fed national activity index was reported at +.28 versus the prior reading of -.22.

   Other

            The latest Cleveland Fed financial stress index (short):

Politics

  Domestic

What Trump really said about Iraq (short)?

The results from Seattle’s raising the minimum wage (medium):


  International War Against Radical Islam







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