Monday, September 25, 2017

Monday Morning Chartology

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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