Monday, March 12, 2012

Monday Morning Chartology 3/12/12



The Market
Technical

Monday Morning Chartology


The S&P is making its second attempt to challenge the upper boundary of its intermediate term trading range--so far unsuccessfully.



Under our time and distance discipline, GLD confirmed its break below the initial support level. However, since it did close on the boundary on its last day of the confirmation process, I am extending it one more day.




The VIX is working its way back toward a challenge of the lower boundary of its intermediate term trading range. A break would be positive for stocks.




Fundamental

A good article on determining the value of equity. The short hand way of accomplishing the authors goal is with the PEG (P/E divided by the long term EPS growth rate) ratio which I use in our Valuation Model.
http://advisorperspectives.com/commentaries/fast_30812.php

Bill Gross is placing his bets on QEIII (short):
http://www.zerohedge.com/news/no-more-qe-bill-gross-isnt-buying-it-total-return-fund-mbs-holdings-surge-new-all-time-high

The problem with EU sovereign debt (medium):
http://www.zerohedge.com/news/mark-grant-increased-risks-owning-european-sovereignbank-debt


Economics

This Week’s Data

Other

Politics

Domestic


Energy related tax preferences in 2011 (short):
http://mjperry.blogspot.com/2012/03/68-of-2011-tax-preferences-went-to.html

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.