Tuesday Morning Chartology

The Morning Call

9/5/17

The Market

         

    Technical

            The S&P had a great week, unsuccessfully challenging the lower boundary of its short term uptrend and then bouncing strongly and closing near its former all-time high.  It needs to push through the latter resistance level to confirm that all systems are go for a run higher; but right now the odds seem pretty good.

            TLT ended up flat on the week, having been up Monday through Thursday and then giving it all back on Friday.  It retains a lot of support from its moving averages and its short and long term trends.  However, as you can see, intraweek it touched a prior resistance level and fell back---which is only concerning if TLT breaks its very short term trend of higher lows.

            GLD’s chart has gone from worse to first. 

            The dollar managed to rally somewhat weakly last week.  The good news was that it unsuccessfully challenged the lower boundary of its short term trading range.  The bad news is that it was not by much; plus it remains below its 100 and 200 day moving averages, in a very short term downtrend and in a string of six lower highs.

            Clearly, the VIX is mounting another challenge to its all-time low---another indication of rising complacency and ‘the everything is awesome’ syndrome.

    Fundamental

       Headlines

            ***overnight, the August Chinese Caixin services PMI as well as the August EU services PMI came in better than anticipated.

            Bubbles becoming more bubbly (short):

            http://www.zerohedge.com/news/2017-09-05/bofa-even-bubbles-are-becoming-more-bubbly-thanks-central-banks

       Investing for Survival

   

            What the best investors do that the rest don’t

            https://behavioralvalueinvestor.com/blog/2017/8/27/what-do-the-best-investors-do-that-the-rest-dont

    News on Stocks in Our Portfolios

 

United Technologies has reached a deal to buy Rockwell Collins (NYSE:COL) for $23B, the biggest-ever aerospace deal, The Wall Street Journal reports. That's $140/share in cash and stock, with Rockwell shareholders getting $93.33/share in cash with the remaining $46.67 in United Technologies (NYSE:UTX) stock. Both boards have approved. And it's likely that the new mega-company might break itself in two in time, as some analysts expect.

Economics

   This Week’s Data

   Other

Politics

  Domestic

Quote of the day (short):

http://cafehayek.com/2017/09/quotation-of-the-day-2183.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CafeHayek+%28Cafe+Hayek%29

  International War Against Radical Islam

Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.