Monday, April 23, 2012

The Morning Call-Monday Morning Chartology 4/23/12



The Market
Technical

Monday Morning Chartology


Absent the 50 day moving average (red line), I would conclude that the 1372 level had successfully held the recent challenge. However, I am holding back calling 1372 as the lower boundary of the new short term trading range, until the moving average can be overcome.



You can see how GLD tracked the upper boundary of the very short term downtrend. However, in the last two trading days, GLD has traded flat to slightly up and remained above the lower boundary of its short term trading range. I am willing to pay up for a bit more strength. Notice that the reverse head and shoulders pattern continues to develop.




The bear case against gold and silver (medium):
http://www.zerohedge.com/news/other-side-gold-and-silver-coin

The VIX remains within its short term trading range and above the lower boundary of a very short term uptrend. It also is in the process of developing a reverse head and shoulders formation.




Copper versus the market (short):
http://tickersense.typepad.com/ticker_sense/2012/04/copper-vs-the-market.html

Trading pattern in an election year (short):
http://blog.stocktradersalmanac.com/post/DJIA-2012-Compared-to-Past-Election-Years

Update on ‘best stock market indicator ever’ (short):
http://advisorperspectives.com/dshort/guest/John-Carlucci-Best-Indicator-Ever-Update.php


Politics

Domestic


More misguided government regulation (short):
http://www.ritholtz.com/blog/2012/04/moodys-sp-remain-at-large/

Food stamp nation (medium):
http://www.zerohedge.com/news/foodstamp-nation

CBO infographics (medium):
http://www.zerohedge.com/news/guest-post-presenting-us-government%E2%80%99s-infographic-its-own-insolvency

NSA whistleblowers (today’s must read):
http://www.zerohedge.com/news/nsa-whistleblower-speaks-live-government-lying-you


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.