Monday Morning Chartology

The Morning Call

9/9/19

The Market

         

    Technical

            On Friday, the S&P closed above its 100 DMA for the third day, reverting to support and above the upper boundary of the August 5^th trading range, voiding that trend.  Both are pointing at the resumption of upward momentum.  The next resistance level is the all time high (3027).  The only negative is Thursday’s gap up open---which needs to be closed.

            The long bond recovered from Thursday’s shellacking, though it did not close Thursday’s gap down open---which will need to be filled.  Its chart remains very strong with TLT above both MA’s and in uptrends across all timeframes.  

            The dollar was up four cents on Friday, continuing to close the gap down open on Wednesday.  It ended above both MA’s and in short and long term uptrends.

            While GLD was lower the last two days last week, but it remains above both MA’s and in very short term and short term uptrends.  You can see the gap down open last Thursday---which needs to be filled.

            The VIX resynced with the Averages, closing below the lower boundary of its August 5^th trading range (if  it remains there through the close today, the trading range will be voided) and its 100 DMA (now support; if it remains there through the close on Tuesday, it will revert to resistance).  It also finished below its 200 DMA for a second day (now support; if it closes there through the close on Tuesday, it will revert to resistance).

    Fundamental

       Headlines

            At last, somebody gets it.  Central banks need to raise rates,

            https://www.zerohedge.com/news/2019-09-08/why-ecb-should-raise-not-cut-rates

           

    News on Stocks in Our Portfolios

 

           

Economics

   This Week’s Data

      US

     International

            Q2 Japanese GDP growth was 0.3%, in line; the price index was 0.4%, also in line; private consumption was 0.6%, also in line; capital expenditures were 0.2% versus 0.7%

            The July German trade balance E20.2 billion versus estimates of E17.5 billion.

            The July UK trade balance was -E0.21 billion versus forecasts of -2.3 billion; construction spending was +0.3% versus -0.1%; GDP growth was 1.0% versus 0.8%; industrial production was +0.1% versus -0.1%.

           

    Other

            Heavy duty truck orders declining.

            https://www.zerohedge.com/news/2019-09-04/trucking-recession-heavy-duty-truck-orders-collapse-production-slashed-cancellation

            Brexit update.

            https://www.zerohedge.com/news/2019-09-09/rudd-y-hell-its-boristoff-fibbentrop-pact

What I am reading today

UN official says immigrants have the right to enter the US.

https://www.zerohedge.com/news/2019-09-06/un-global-comms-chief-says-illegally-entering-us-right

How Napoleon lost the battle of Waterloo.

https://www.nationalgeographic.com/archaeology-and-history/magazine/2018/01-02/why-napoleon-lost-battle-waterloo/

Debunking the ETF’s are bubble myth.

https://awealthofcommonsense.com/2019/09/debunking-the-silly-passive-is-a-bubble-myth/

           

            Quote of the day.

            https://cafehayek.com/2019/09/quotation-of-the-day-2908.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CafeHayek+%28Cafe+Hayek%29

            Mueller covered for the Saudi’s after 9/11?  I wonder how much of this is true.

            https://www.zerohedge.com/news/2019-09-07/mueller-helped-saudis-cover-involvement-911-attacks-lawsuit

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