Monday, June 25, 2012

The Morning Call + Monday Morning Chartology + Why US banks aren't ready for an EU crisis



The Market

Technical

Monday Morning Chartology


Last week, the S&P was unable to sustain the follow through of the completion of that reverse head and shoulders formation, By closing below its short term uptrend and the former ‘neckline’ (1338) of the aforementioned reverse h&s, that neckline now becomes resistance. Note on Friday, it challenged the ‘neckline’ and failed. Support exists at the former ‘shoulder line’ (1292), the former ‘head’ (1266) and the lower boundary of its intermediate term uptrend (1243).







Gold broke its short term uptrend last week, leaving it near the lower boundary of a very wide intermediate term trading range.


Gold as a store of value (10 minute video):
http://www.zerohedge.com/news/gold-store-value





The VIX toyed with the lower boundary of its short term uptrend all week, challenging it early in the week, failing to confirm it, then challenging it again on Friday. A confirmed break would be a positive for stocks.




The presidential cycle (short):
http://www.crossingwallstreet.com/archives/2012/06/good-time-in-the-election-cycle.html

The last five days of June (short):
http://blog.stocktradersalmanac.com/post/June-Last-Five-Days-Boon-For-Techs--Small-Caps-COMPQ-QQQ-RUT-IWM-Close-Out-Q2-Stronger

Fundamental

The latest from Charles Biderman (7 minute video):
http://www.zerohedge.com/news/biderman-and-bianco-berate-bernanke-buy-bullion-and-batter-bullishness

Why US banks aren’t ready for an EU crisis (medium and today’s must read):
http://www.bloomberg.com/news/2012-06-24/u-s-banks-aren-t-nearly-ready-for-coming-european-crisis.html


Politics

Domestic


More of your tax dollars at work (short):
http://scottgrannis.blogspot.com/2012/06/how-government-squanders-money.html

The rationale for executive privilege (medium):
http://www.nationalreview.com/articles/303693/obama-s-best-kept-secret-rich-lowry



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.