Investing for Survival

The Morning Call

11/18/13

The Market

           

    Technical

      Monday Morning Chartology

   

            The S&P remains solidly within all major uptrends.

            The long Treasury continues to trade in a five month range.

            While there had been a lot of volatility around trend boundaries, it sure looks like GLD has formed a large pennant formation.  Technical lore suggests that a break in either direction will continue that trend for some time. 

            The VIX closed right on the lower boundary of its short term trading range.  On the one hand, a break below that lower boundary would suggest higher stock prices; on the other hand, the VIX is at near historic lows indicating far too much complacency.

            http://www.zerohedge.com/news/2013-11-17/bofaml-warns-dont-get-complacent

    Fundamental

       

            The latest from Nassim Taleb (8 minute video):

            http://www.zerohedge.com/news/2013-11-17/taleb-blasts-bernanke-greenspan-warns-debt-raises-risk-catastrophe     

            Post QE worries (medium):

            http://advisorperspectives.com/dshort/guest/BP-131115-Post-QE-Worries.php

      News on Stocks in Our Portfolios

 

Boeing launches 777X with deals worth $95B

·                                 In what is the largest product launch by dollar value in commercial jetliner history, Boeing (BA) has officially unveiled the next-generation 777X at the Dubai.

·                                 Boeing has received bookings and commitments worth $95B at list prices for 259 jets from four customers in Europe and the Middle East.

·                                 Emirates has ordered 150 airplanes with an option for 50 more, Lufthansa wants 34 aircraft, Qatar Airways 50, and, as noted already, Etihad Airways 25.

·                                 The deals also represent a windfall for GE (GE), which is supplying the engines for the plane.

·                                 The 777X family includes two models: the 777-9X and the 777-8X.

·                                 The 9X will seat over 400 passengers and have a range of more than 8,200 nautical miles (15,185 km). The aircraft will have the "lowest operating cost per seat of any commercial airplane," Boeing says.

·                                 The 8X will seat 350 passengers and offer a range exceeding 9,300 nautical miles (17,220 km).

·                                 Meanwhile, Boeing has obtained an order for up to 111 737 jets from fly Dubai in a deal worth $11.4B at list prices.

Economics

   This Week’s Data

   Other

            Update on big four economic indicators (medium):

            http://advisorperspectives.com/dshort/updates/Big-Four-Economic-Indicators.php

Politics

  Domestic

  International War Against Radical Islam

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 Investing For Survival is to help other investors build wealth and benefit from the investing lessons he learned the hard way.