The Morning Call
1/27/20
The
Market
Technical
Friday’s S&P pin
action, notwithstanding, you couldn’t ask for a better looking chart. The assumption has to be more of the same.
***overnight, the
futures are off dramatically as a result of the rapid spread of the coronavirus
and the growing number of deaths.
Barring some kind of Black Death scenario, I can’t imagine this epidemic
rising to the level of having a major impact on the global economy. The world has faced similar incidents (SARS, Ebola)
in the past and they have had only a temporary effect on the economy and the Market. That said, when equities are grossly overvalued,
you never know what can trigger the ‘emperor’s new clothes’ moment. My bottom line: this will prove to be another
‘buy the dip’ scenarios for the bulls.
The long bond has
broken out of its short term decline, in process reverting the 100 DMA to
support. Resistance can be found at the
upper boundaries of its very short term trading range and its intermediate term
uptrend. On the negative side, there is
a gap up open from Thursday that needs to be filled.
The dollar spent
last week rallying in an otherwise dismay chart. It remains in a short term downtrend and
below both MA’s. But it has begun the
process of closing that huge gap down open.
Challenging its 200 DMA will be a major test.
GLD continues its
winning ways, suggesting either a weak economy or a retreat to safety.
The VIX had a big
day on Friday. It looks like it wants to
trade above a very short term down trend that began last August. And it closed above both its 100 DMA (now resistance;
if it remains there through the close Tuesday, it will revert to support) and
200 DMA (now resistance; if it remains that through the close on Wednesday, it
will revert to support). At the moment,
it appears to be following equity prices versus anticipating any move; so, its
pin action is not providing any technically significant information, in my
opinion.
Fundamental
Headlines
The coronavirus
epidemic getting worse.
News on Stocks in Our Portfolios
Economics
This Week’s Data
US
International
Other
Brexit
a done deal.
What
I am reading today
Queen
Elizabeth beats tinsel town.
Scientists
in Britain may have accidentally found a cure for cancer.
There are no ‘market based
solutions’
Visit Investing
for Survival’s website (http://investingforsurvival.com/home)
to learn more about our Investment Strategy, Prices Disciplines and Subscriber
Service.
No comments:
Post a Comment