The Morning Call
12/23/14
The Market
Technical
The
indices (DJIA 17959, S&P 2078) are close to or are challenging resistance
levels. For the Dow, the former high is
17991 and the upper boundary of its long term uptrend is 18957. The S&P busted through the upper boundary
of its long term uptrend (2075) for the second time. If it remains above this level though the
close next Tuesday, that boundary will have been successfully challenged. Its former high is 2080 (which was reached
during its first unsuccessful challenge).
Meanwhile,
the TLT continues to perform well (slowing economy or safe haven?) and GLD is
again getting beaten up (no safe haven thesis, here).
Free
money still appears to be driving the bid.
Housing starts reported yesterday were not good; but the Bank of Japan
announced that it would buy the entirety of new bonds issued by the government
and Draghi’s QE is starting to get positive headlines again. Buying stocks because central banks are
making speculation cheap is not my idea of a reasonable or safe investment
strategy.
An inside look at
this morning’s upbeat GDP report:
And
the lousy durable goods order number:
No comments:
Post a Comment