Tuesday, September 04, 2012

The Morning Call--Tuesday Morning Chartology



The Market

Technical

Tuesday Morning Chartology


The S&P remains within its short term trading range and intermediate term uptrend. Further, it is within the very short term uptrend. The question before us is which trend---the short term trading range or the very short term uptrend---will ultimately prevail.




GLD soared on Friday, breaking back above the upper boundary of the short term downtrend. Our time and distance discipline now kicks in. A confirmed break will prompt additional GLD purchases.




While the VIX was down Friday, it remained above the upper boundary of that very short term downtrend for the second day---not a good sign for stocks.




Fundamental

Update on the Q ratio and market valuation (medium):
http://advisorperspectives.com/dshort/updates/Q-Ratio-and-Market-Valuation.php

Update on the Crestmont Market Valuation Ratio (medium):
http://advisorperspectives.com/dshort/updates/Crestmont-PE-Ratio.php

The latest from Spain (medium):
http://www.nytimes.com/2012/09/04/business/global/money-and-people-leave-spain-as-economic-gloom-deepens.html?_r=3&pagewanted=1&seid=auto&smid=tw-nytimes


Economics

This Week’s Data

Other


Households continue to pay down debt (medium):
http://www.ritholtz.com/blog/2012/08/has-household-deleveraging-continued

Politics

Domestic


The problem with student loans (medium):
http://www.zerohedge.com/news/guest-post-student-debt-malinvestment

International War Against Radical Islam

Krauthammer on Iran and Israel (medium):
http://www.washingtonpost.com/opinions/charles-krauthammer-the-deterrence-works-fantasy/2012/08/30/20c0a3ea-f2d8-11e1-892d-bc92fee603a7_story.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.