Monday, September 17, 2012

The Morning Call-Can you say 'insanity?'


I don’t have to tell you that it was all wine and roses last week.

The Market
Technical
Monday Morning Chartology


 The S&P is now in a short term uptrend (1397-1474) and an intermediate term uptrend (1303-1863). The next visible resistance level, other than the upper boundaries of the two uptrends, is 1576.



And this S&P chart showing periods of prior Fed easing:
http://advisorperspectives.com/dshort/commentaries/QE-Update-Phil-Gose-120914.php

GLD remains in a short term uptrend and an intermediate term trading range.




The VIX continues its decent in both a short term and very short term downtrend---which bodes well for stocks. It is close to challenging the lower boundary of its intermediate term trading range.




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

Fundamental

Investors got all they wanted last week: (1) German court supported the EU bail out [sort of], and (2) the Ber-nank cast his vote for President, kicking in the after burners on the printing presses. My only comment is one that you have heard before: it has already been established beyond a shadow of a doubt that throwing money at our and the EU problem has solved nothing; so why do we keep doing the same thing expecting a different result?

Meanwhile the bleeding hasn’t stopped in Spain (medium):
http://www.bloomberg.com/news/2012-09-17/spanish-banks-bleeding-cash-cloud-bailout-debate-euro-credit.html

And (medium):
http://www.zerohedge.com/news/chart-spains-mariano-rajoy-wishes-could-be-swept-under-rug

ECRI founder says we are now in a recession (medium):
http://advisorperspectives.com/dshort/guest/Shedlock-120914-ECRI-Recession-Call.php





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.