Monday, July 31, 2017

Monday Morning Chartology

The Morning Call

7/31/17

The Market
         
    Technical

            The S&P chart continues to need little comment.  It is going up no matter what measure you use.



            The long Treasury broke below the lower boundary of its very short term downtrend and remained there long enough to negate the trend. However, it has a lot of support from both its 100 and 200 day moving averages, the lower boundary of its short term trading range and the lower boundary of its long term uptrend.  If TLT starts breaking these support levels, it would likely mean bond investors are starting to question the weak economy, dovish Fed scenario.



            The dollar continues to get hammered and is rivaling GLD’s late 2016 plunge in ugliness.  It also seems clear that dollar investors are not buying the improving economy, higher interest narrative.



            GLD maintained its upside momentum, closing above its 100 and 200 day moving averages, above the lower boundaries of its short term trading range and a very short term uptrend.



            The VIX bounced hard at the end of last week, closing above the former lower boundaries of its intermediate and long term trading ranges.  The question is, is this rebound a rally within the established downtrends or was the prior decline an emotional bottom and those trading ranges are the true trend.  Follow through.



    Fundamental

       Headlines

            The ticking time bomb in margin debt (medium and a must read):

            ***overnight, the July Chinese manufacturing and services PMI’s were below estimates.

       Investing for Survival
   
            How investors fool themselves.
               

    News on Stocks in Our Portfolios
 
Donaldson (NYSE:DCI) declares $0.18/share quarterly dividend, 2.9% increase from prior dividend of $0.175.

Economics

   This Week’s Data

   Other

            The ostrich approach to monetary policy (medium):

Politics

  Domestic

  International

            Latest on North Korea/China/US (medium):

           
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