Monday, March 14, 2022

Monday Morning Chartology

 

The Morning Call

 

3/14/22

 

 

The Market

         

    Technical

           

            It was another volatile week that witnessed a change in the S&P’s technical picture; to wit, the index successfully challenged the lower boundary of its short term trading range and reset to a downtrend. It still has the 23.6% Fibonacci retracement level as very near in support. However, if it breaks that, then ~3800 is likely in our future.

 

The biggest pain trade.

https://www.zerohedge.com/the-market-ear/ca07mbeig1

 



 

Like everything else, bonds were active last week. In TLT’s case, it voided a very short term uptrend and appears about to challenge the lower boundary of it short term trading range---for the third time. The more times this support level holds, the stronger it becomes.

            https://www.zerohedge.com/the-market-ear/chjmmbl6ne

 

            Credit is cracking.

            https://www.zerohedge.com/markets/credit-cracking

 

 

 

 


 

 

 

Gold did its best Titan III impression last Tuesday, pushing up to its all-time high and nearing the upper boundary of its short term uptrend then immediately reversed itself and filled both those gap up opens---which is actually a positive for the longer term. Despite the late in the week softness, my assumption is that it is going higher. As I noted last week, if it can break though that all-time and remain there, then there is nothing standing in the way of 3000-4000/oz.

 


 


Nothing in the dollar’s story has changed, i.e., there is nothing on the horizon that would suggest a weaker dollar. Plus, last week it managed to fill both of those gap up opens, leaving it free to push higher. My assumption remains that irrespective of what happens, investors continue to believe that the dollar is a safe place to be.

 


 

 

            Friday in the charts.

            https://www.zerohedge.com/markets/bonds-stocks-commodities-crushed-because-putin

 

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        Review of last Week

 

Last week was an extremely slow one with regards to economic data. For all intents and purposes, the US stats were mixed with no primary indicators reported. Ditto, overseas.

 

There is no way one can draw any kind of meaningful conclusion from these results---so I won’t. The outlook remains:  the economy is struggling to grow, hampered by irresponsible monetary and fiscal policies, getting no support from the global economy and threatened by (1) seemingly mounting inflationary forces and (2) continued supply chain disruption as a result of the conflict in Ukraine.

 

Goldman slashes 2022 GDP forecast.

https://www.zerohedge.com/markets/one-step-closer-stagflation-goldman-slashes-2022-gdp-forecast-175-sees-35-odds-recession

 

                        US

 

 

                        International

             

                          February German PPI came in at +1.7% versus estimates of +2.0%.

 

                        Other

 

The problem with the labor market is not too few workers, it is too low wages.

https://www.realclearmarkets.com/articles/2022/03/11/businesses_cant_pay_sufficiently_now_or_in_the_future_821219.html

 

                                                  Can you say, ‘counterparty risk’?

                          https://www.zerohedge.com/markets/jpmorgan-emerges-largest-counterparty-chinese-tycoons-massive-nickel-short-squeeze

 

                        The Fed

 

              Bretton Woods III?

              https://www.zerohedge.com/markets/wall-street-stunned-zoltan-pozsars-latest-prediction-what-comes-next

 

                        Fiscal Policy

 

              Four thousand earmarks in the latest budget act.

              https://www.zerohedge.com/political/when-pigs-fly-congress-inserts-over-4000-pork-earmarks-spending-bill

 

 

                        Inflation

 

              Yellen says another year of ‘uncomfortably’ high inflation.

              https://www.cnbc.com/2022/03/10/treasury-secretary-janet-yellen-says-inflation-could-be-high-for-a-year.html

 

            Geopolitics

 

              It is not only Russia that will be hurt by those sanctions.

              https://www.zerohedge.com/geopolitical/rickards-sanctions-boomerang-putins-options

 

     Bottom line.

 

                           150 years of S&P earnings and dividend yields.

                           https://politicalcalculations.blogspot.com/2022/03/150-years-of-historic-yields-for-s-500.html#.YitmWnrMKUk

 

    News on Stocks in Our Portfolios

 

          

What I am reading today

 

            Archeologists have found Shackleton’s shipwreck.

            https://slate.com/technology/2022/03/shipwreck-shackleton-archaeology-discovery.html

 

            Monday morning humor---courtesy of my granddaughter.

            https://www.youtube.com/watch?v=MtN1YnoL46Q

 

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