Monday, February 13, 2012

The Morning Call-Those pesky Greeks; they are already plannig to renegotiate the deal


The Market
Technical

Monday Morning Chartology


Friday’s decline is barely noticeable on this chart.




GLD broke through the lower boundary of its short term up trend but held at initial support. If there is follow through this week, I will have to re-consider our current strategy.
http://www.zerohedge.com/news/asia-buying-gold-dips-%E2%80%9Cempires-may-fall-currencies-may-change-gold-will-always-survive%E2%80%9D





VIX spiked big on Friday. It looks as though the former low (circa 15.5) remains solid support. It also clearly busted through the very short term down trend. Let’s see if it is confirmed and how the VIX handles the short term down trend.




Short interest near lows (short):
http://www.zerohedge.com/news/shorts-have-left-building

What happens when a period of low volatility ends (short):
http://blog.stocktradersalmanac.com/post/Low-Volatility-Streak-Hangs-On

Fundamental

Headlines


The Greek parliament passed the austerity measures necessary to get their bailout money. I raised the issue in a prior post of whether the Greek’s will actually meet the terms of the austerity for money deal. Here is the answer:
http://www.zerohedge.com/news/samaras-pledges-renegotiate-bailout-pact-after-april-elections

Update on this earnings season’s ‘beat’ rate:
http://www.bespokeinvest.com/thinkbig/2012/2/10/earnings-season-gets-better.html


Economics

This Week’s Data

Other


A look at the consumer and why spending will likely continue to grow at below average secular pace (medium):
http://advisorperspectives.com/commentaries/pimco_20912.php



Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.