How to make money in the market...look beyond the obvious...spot the trends...and do your homework.
Monday, May 21, 2012
The Morning Call + Subscriber Alert + A classic Dow Sell signal
The Market
Technical
Monday Morning Chartology
As you can see, the S&P is approaching a range with multiple support levels. With this kind of congestion, I expect a slow down in the rate of decline and, hopefully, the establishment of a new lower boundary of its short term trading range.
GLD makes a great rebound. Notice the similarity to the late December/early January sell off and bounce.
http://www.zerohedge.com/news/why-has-gold-fallen-price-and-what-outlook
The VIX soared again on Friday. While it has not quite met the time element of our time and distance discipline, it has more than satisfied the distance element, thus confirming the break above the upper boundary of its short term trading range. This is not a positive for stocks.
We now have a classic Dow sell signal (short):
http://blog.stocktradersalmanac.com/post/DJIA--DJT-Breach-Recent-Lows-Trigger-Dow-Theory-Sell-Signal
Fundamental
The latest from David Rosenberg (medium):
http://www.zerohedge.com/news/david-rosenberg-despair-begets-hope
Subscriber Alert
The following stocks have traded below the upper boundary of their Buy Value Range and are, therefore, being Added to their respective Buy Lists. Our Portfolios own shares in all these stocks. None will be Bought today.
In the Dividend Growth Portfolio: United Parcel Services (UPS-$74)
In the High Yield Portfolio: United Parcel Services (UPS-$74) Kinder Morgan Energy Ptrs (KMP-$77)
In the Aggressive Growth Portfolio: Blackrock (BLK-$172), Staples (SPLS-$13)
Economics
This Week’s Data
Other
US manufacturing continues to improve (short):
http://mjperry.blogspot.com/2012/05/future-of-american-manufacturing-looks.html
US debt and economic growth (5 minute video):
http://www.zerohedge.com/news/biderman-malinvestment-and-diminishing-returns-intervention
Is the Fed already in the midst of Twist 2 (medium):
http://www.zerohedge.com/news/time-operation-twist-1-over-fed-will-have-quietly-completed-40-operation-twist-2-well
Politics
Domestic
Missile defense for wimps (medium):
http://www.nationalreview.com/articles/300198/missile-defense-wimps-clifford-d-may
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.
Labels:
blk,
charts,
debt,
dow sell signal,
dow theory,
exonomics,
gold,
kmp,
manufacturing,
UPS
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