Monday, April 30, 2012

The Morning Call + Monday Morning Chartology + Fed smackdown


The Market
Technical

Monday Morning Chartology


The S&P short term trading range is marked by the brown lines. The purple line is the lower boundary of the intermediate term uptrend. The red line is the 50 day moving average.



The GLD intermediate term trading range is marked by the purple lines. The short term trading range is bordered by the brown line on the bottom and the upper purple line on the top. Notice the continuing development of the reverse head and shoulders.




Institutional holdings of gold decline to a low (short):
http://www.zerohedge.com/news/funds-cut-positions-gold-4-and-silver-20-gold-positions-3-year-low

The VIX intermediate term trading range is marked by the purple lines. The short term trading range is bordered by the lower purple line on the bottom and the brown line on the top. The VIX also looks like it trying to form a reverse head and shoulders.




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

Fundamental

Why the current debate about growth versus austerity is bogus (medium and today’s must read):
http://www.zerohedge.com/news/give-austerity-chance-growth-spending-failed


News on Stocks in Our Portfolios

More quarterly earnings per share reports:

Reported Expected

Chevron $3.27 $3.22

Economics

This Week’s Data


March personal income rose 0.4% versus expectations of a 0.3% increase; personal spending was up 0.3% versus estimates of up 0.4%.

Other

Manufacturing continues to perform well (medium):
http://mjperry.blogspot.com/2012/04/phenomenal-gains-in-manufacturing.html

Thoughts on why economic growth has been so slow (medium):
http://scottgrannis.blogspot.com/2012/04/thoughts-on-why-real-growth-has-been.html

Finance in denial (medium):
http://www.nakedcapitalism.com/2012/04/morgan-sandquist-finance-in-denial.html

US companies borrowing at home, hiring abroad (medium):
http://www.zerohedge.com/news/us-companies-are-furiously-creating-jobs-abroad

Politics

Domestic


Atrocities Prevention Board? Give me a break (medium):
http://www.washingtonpost.com/opinions/while-syria-burns/2012/04/26/gIQAQUC0jT_story.html

Debunking the bailout myths (medium):
http://www.ritholtz.com/blog/2012/04/debunking-bailout-myths/

Federal Reserve smack down (this week’s must read):
http://www.zerohedge.com/news/robert-wenzels-david-speech-crushes-federal-reserves-goliath-dream

Monday morning humor (2 minute video):
http://www.theglobeandmail.com/news/video/video-jimmy-kimmel-rips-on-obama-secret-service/article2417168/


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.