The Morning Call
5/18/20
The
Market
Technical
The S&P was on
a roller coaster last week, finishing within the 4/17-4/21 trading range---which
continues to exhibit a magnetic pull.
Note the double top.
Though down on
Friday, the long bond was up on the week.
In recent trading, it has made a higher high and a lower low; so, we
need to pay attention to how this discrepancy gets resolved.
Gold had a great
week, making a new higher high and confirming that momentum remains to the
upside.
The
dollar also had a good week. In the
process, it broke a trend of lower highs making
a slightly higher high. I would
like to see some follow through to the upside.
If that occurs, then, like GLD, it will confirm upside momentum.
Wednesday,
the VIX broke a month long very short term downtrend. Even though it sold off on Thursday and Friday,
it was not enough to reestablish the downtrend.
That supports the notion that the Averages’ 4/17-4/21 trading range is
constraining upside momentum.
Fundamental
Headlines
***overnight update
on coronavirus.
Promising
coronavirus vaccine trial data.
In praise of individual
responsibility.
Goldman cuts S&P
earnings forecast.
If you didn’t see last night’s
Powell 60 Minutes interview, here is a recap.
News on Stocks in Our Portfolios
Economics
This Week’s Data
US
International
Q1
Japanese (preliminary) GDP growth rate was -0.9% versus estimates of -1.2%;
capital expenditures were -0.5% versus -1.5%; private consumption was -0.7%
versus -1.6%.
Other
US
oil rig count at an eleven year low.
What
I am reading today
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