Tuesday, May 26, 2020

Tuesday Morning Chartology

The Morning Call


The Market

            The S&P momentum remains to the upside, although it is struggling a bit to sustain it.  Working against it is the overhead resistance presented by its 100 and 200 DMA as well as the downward pull of its 5/18 big gap up open.

            The long bond’s technical position is somewhat similar to the S&P (and GLD).  While visually it doesn’t look the same, still, its bias is to the upside but is being restrained by other technical factors---in this case, the upper boundaries of its very short term and intermediate term uptrends.

            Gold’s chart not only looks like TLT’s chart but its technical picture is the same---it continues to push upward albeit at a slow pace which is being inhibited by the magnetic pull of the upper boundaries of its very short term and short term uptrends.

            The dollar’s chart is a weak version of TLT and GLD---momentum remains to the upside but it is anemic.  Indeed, it is being supported by its 100 and 200 DMA’s.

            The VIX has not made exactly mirrored the S&P, i.e. it couldn’t sustain its very short term downtrend nor has made a new low.  That supports the notion of a labored advance in stock prices.



***overnight update on coronavirus
CDC confirms low death rate.

            Fed now the proud owner of bankrupt Hertz bonds.

    News on Stocks in Our Portfolios


   This Week’s Data


            The April Chicago Fed national activity index came in at -16.7 versus estimates of -3.0


            The March Japanese leading economic indicators were reported at 84.7 versus consensus of 83.8; the March All Industry index was -3.8 versus -4.8.

            Final Q1 German GDP fell 2.2%, in line; June consumer confidence was -16.7 versus -18.3.


What I am reading today

            Earth’s magnetic field weakening in certain areas.

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