Monday, August 06, 2012

The Morning Call + Subscriber Alert



The Market

Technical

Monday Morning Chartology


The S&P is now in a very short term uptrend with a series of higher lows and higher highs---pretty much confirming the positive bias to this Market.




GLD continues to be directionless and has made no concerted attempt to break the string of lower highs. While it is dead money for the moment, our Portfolios will hold GLD until it breaks the lower boundary of its intermediate term trading range.




The VIX is now hovering above the lower boundary of its intermediate term trading range (which is also the neckline of a developing head and shoulders). A confirmed break of this level would be positive for stocks.




A buy signal (short):
http://advisorperspectives.com/dshort/guest/Georg-Vrba-120803-Buy-Signal.php

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

Fundamental

Update on second quarter’s earnings and revenue ‘beat’ rate (short):
http://www.bespokeinvest.com/thinkbig/2012/8/3/earnings-revenue-beat-rates-remain-the-same.html

Bill Gross on the EU (medium):
http://www.zerohedge.com/news/bill-gross-explains-why-europes-plan-get-your-money-doomed

Corporations now pulling money out of EU banks (medium):
http://www.zerohedge.com/news/shell-pulling-cash-out-europe-due-shift-willingness-take-risk

S&P downgrades Italian financials (short):
http://www.zerohedge.com/news/sp-downgrades-15-italian-financial-institutions-says-country-faces-deeper-recession-previously-

Of course, our own finances are nothing about which to brag (short):
http://www.zerohedge.com/news/one-year-anniversary-us-downgrade

Subscriber Alert

The stock price of Amerigas Ptrs (APU-$43) has risen above the upper boundary of its Buy Value Range. Accordingly, it is being Removed from the High Yield Buy List. The High Yield Portfolio will continue to Hold this stock.


Economics

This Week’s Data

Other


Rail traffic continues to rise (short):
http://pragcap.com/rail-traffic-continues-to-post-gains-2

Politics

Domestic


Some thoughts on austerity (medium):
http://www.ritholtz.com/blog/2012/08/the-rights-schadenfreude-as-their-austerity-policies-devastate-europe/



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.