Monday, August 13, 2012

The Morning Call--Merkel is back


The Market

Technical

Monday Morning Chartology


The big question is which offers the more powerful resistance (1) the upper boundary of the short term trading range [top brown line] or (2) the upper boundary of the very short term up trend [top black line]





GLD is once again approaching the level of the last lower high (black line).
http://www.zerohedge.com/news/golds-recent-resilience




Friday’s down move is the first clear move below the lower boundary of the VIX intermediate term trading range. Technically, it is the third day below that boundary. I want to revisit the confirmation issue at the close today.




A look at volume trends (short):
http://blogs.wsj.com/marketbeat/2012/08/09/charts-of-the-day-trading-volume-slump-continues/?mod=WSJBlog&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fmarketbeat%2Ffeed+%28WSJ.com%3A+MarketBeat+Blog%29&utm_content=Google+Reader

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

Fundamental

Merkel is back from vacation (medium):
http://www.zerohedge.com/news/merkel-baaaaaaack

Demographics and stock prices (medium):
http://blogs.cfainstitute.org/investor/2012/08/08/the-reformed-brokers-american-idle-five-reasons-we-hate-the-stock-market-slight-return/

Is corporate America sending a signal (short):
http://pragcap.com/is-corporate-america-sending-a-recession-warning

The latest from Jim Bianco (5 minute video):
http://www.investmentpostcards.com/2012/08/11/jim-bianco-on-treasuries-gold-equities/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+wordpress%2FVYxj+%28Investment+Postcards+from+Cape+Town%29

Update on second quarter’s earnings ‘beat’ rate (short):
http://www.bespokeinvest.com/thinkbig/2012/8/10/earnings-beat-rate-dips-a-bit.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.