The Morning Call
9/25/17
The
Market
Technical
The
S&P (and the Dow) continues its upward march, supported by both moving averages
and uptrends across all timeframes. The
assumption at this point has to be that it will challenge the upper boundary of
its long term uptrend. The only problem
is that pesky gap open back on 9/11.
The
long Treasury is apparently not worried about higher interest rates. It remains above its 100 and 200 day moving
averages and the lower boundaries of its short term trading range and its long
term uptrend. Notice it is up (yield
down) the two days following the Fed meeting.
Meanwhile, short rates are up. So
the yield curve is flattening---pointing at economic weakness.
The
dollar is the mirror image of TLT---below its 100 and 200 day moving averages
and the upper boundaries of its short and very short term downtrends. Also like TLT its pin action (down) the two
days following the Fed meeting was exactly the opposite of what you would
expect.
While
GLD remains above its 100 and 200 day moving averages and the lower boundary in
its short term uptrend, its recent decline suggests that its followers believe
higher rates are ahead.
The
VIX continues to get pounded. It is
below all support levels and is nearing its recent bottom. The question is, will it go still lower?
Fundamental
Headlines
***overnight,
the September Japanese Markit flash manufacturing PMI hit a four month high and
PM Abe is said to be considering a 2 trillion yen stimulus package.
And the September German
business confidence came in below expectations; Merkel wins again---sort of.
The Trump/GOP tax plan was
leaked.
Investing for Survival
Separating
the do’s and don’ts of investing.
News on Stocks in Our Portfolios
Genuine Parts Company (NYSE:GPC) announces that it worked a merger with European parts
distributor Alliance Automotive Group.
Economics
This Week’s Data
The
August Chicago Fed national activity index came in at -.31 versus expectations
of +.11.
Other
Politics
Domestic
International War Against Radical
Islam
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