Monday Morning Chartology

The Morning Call

7/1/13

The Market

           

    Technical

            The S&P bounced off its 50 day moving average and perhaps made a lower high (see Saturday’s Closing Bell).  It clearly remains in a very short term downtrend.

            What can I say about this chart? Ugh? Run for the hills? Look out below? Incoming?  I say, great sale.  There is a lot of damage that needs to be repaired before this chart gets healthy.

            The VIX remains within its intermediate term downtrend but above a very short term uptrend.  If the latter is broken, that would be a plus for stocks.

           

            Update on ‘the best stock market indicator ever’

            http://advisorperspectives.com/dshort/guest/John-Carlucci-Best-Indicator-Ever-Update.php

   Fundamental

            Another excellent piece by Lance Roberts (medium and a must read):

            http://advisorperspectives.com/dshort/guest/Lance-Roberts-130628-Same-Mistakes.php

            More on valuation (short):

            http://advisorperspectives.com/dshort/updates/Regression-to-Trend.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