Monday Morning Chartology
Clearly investors loved Friday’s nonfarm payroll report. Even though the spike was on low volume, it sliced through the upper boundary of the S&P’s short term trading range like a hot knife through butter and is a short hair away from the upper boundary of its intermediate term trading range. If the S&P remains above 2110 through the close tomorrow, its short term trend will reset to up. That said, it is in a heavily congested area of resistance, so further progress will likely be labored.
Update on margin debt (short):
I said it last week. How to argue with this chart? Whoever thought that the long Treasury would be on a moonshot when rates are already below 2%?
GLD continues to do well, somewhat surprising in the midst of a moonshot environment in which everything is awesome. I can’t explain the reason. It seems like investors are buying gold and TLT based on a poor global economic outlook and stocks on a goldilocks US forecast. That is a little tough for me to reconcile.
This is a very rational analysis of gold as an investment. However, I wonder how the author would categorize stocks that haven’t, don’t and have no foreseeable prospect of paying a dividend. (medium)
Looks like the VIX is going to make a sixth try at busting through the lower boundary of its short term trading range.
Deutschebank’s chief economist calls for E150 billion bank bailout (medium):
The latest from Doug Kass (medium):
***June Chinese consumer inflation rose at a 1.9% annual rate, below the official goal of 3%; May Italian industrial output fell 0.6%; Japanese Prime Minister Abe’s party scored a big victory in parliament and afterward he promised a new stimulus policy (as opposed to the old stimulus policy).
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Update on consumer credit (student and auto loans):
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