The Morning Call
6/22/20
The
Market
Technical
The S&P
vacillated most of last week. The good
news is that it is holding above its 200 DMA.
The bad news is that (1) the Dow is below its 200 DMA, keeping the Averages
out of sync and short term directionless until this incongruity is corrected
and (2) the longer the indices leave their ‘island tops’ intact, the more
likely a move to the downside.
Long term, TLT
remains strong technically, though it has struggled recently to maintain upward
momentum. It is now making its fourth attempt
break out of a month long sinking spell.
Stay tuned.
Gold spiked on
Friday, making a strong attempt to re-establish upside momentum. I want to see a day or two of follow through
before concluding that it has accomplished that task.
The dollar has sustained
an uptrend marked in inches per day. So,
while it is good news that it has bounced off the lower boundary of its short term
trading range, progress to date leaves it below both DMA’s and the upper
boundary of its very short term downtrend.
Notice that all three are converging at the same approximate level which
increases the strength of resistance.
The
VIX has sold off during what is basically a flat week in stock prices, in the
process, reverting its 100 DMA to resistance.
This indication of less uncertainty is a plus for stocks.
Fundamental
Headlines
The
coronavirus
***overnight update.
The Fed
The Fed is adding
the pandemic to the upcoming bank stress tests.
China leaves rates
unchanged.
Selling everything
is not a good idea.
News on Stocks in Our Portfolios
Economics
This Week’s Data
US
The May Chicago
Fed national activity index came in at +2.61 versus estimates of -10.0.
International
Other
A
tidal wave of bankruptcies is coming.
What
I am reading today
India seeks purchase of
Russian fighter jets in response to border skirmish with China.
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