Monday Morning Chartology-1/24/11
Steve Cook on Disciplined Investing

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Have You Seen This?


The Market
    
    Technical

      Monday Morning Chartology

    The S&P continues to give no sign of a retreat.





    GLD is sitting right on its intermediate term up trend.  As I noted Friday, any penetration on a closing basis will result in our Portfolios lightening up on this position.



 

    And in the related silver market (short):
    http://www.investmentpostcards.com/2011/01/23/silver-in-backwardation-set-to-move-up/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+wordpress%2FVYxj+%28Investment+Postcards+from+Cape+Town%29&utm_content=Yahoo!+Mail

    I re-drew the down trend lines to broaden the channel on the VIX.  Viewing it this way casts a more negative light on the trend (more positive for stocks).
   



 

    More on the VIX (short):
    http://www.investmentpostcards.com/2011/01/23/vix-puts-stocks-on-correction-alert/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+wordpress%2FVYxj+%28Investment+Postcards+from+Cape+Town%29&utm_content=Yahoo!+Mail

    Neither of these charts will get you feeling warm and fuzzy about the Market:
    http://dshort.com/articles/2010/mega-bear-2000.html
    http://dshort.com/articles/2010/mega-bear-quartet.html

    Update on the sentiment indicators (charts):
    http://www.investmentpostcards.com/2011/01/22/sentiment-signals-bulls-and-bears-retreat-from-extreme-levels/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+wordpress%2FVYxj+%28Investment+Postcards+from+Cape+Town%29&utm_content=Yahoo!+Mail

    The end of the correlation of asset classes (short):
    http://www.ritholtz.com/blog/2011/01/there-goes-the-neighborhood-correlation/

   Fundamental
      
    GDP growth versus Market appreciation post recession (charts and today’s must read):
    http://www.ritholtz.com/blog/2011/01/gdp-growth-vs-market-appreciation-post-recession/

    More on duration and intensity of this rally (medium):
    http://www.ritholtz.com/blog/2011/01/how-much-has-the-fed-distorted-the-stock-market/#more-62383

    This is a thought provoking piece on whether or not we are in the midst of a commodity bubble (medium):
    http://pragcap.com/revisiting-speculative-commodity-bubbles

Economics

   This Week’s Data

   Other

    The weekly ECRI leading index continues to improve (chart):
    http://advisorperspectives.com/commentaries/dshort_12111.php

    More anecdotal evidence of a recovery (short):
    http://mjperry.blogspot.com/2011/01/friday-positive-news-roundup.html

    Traffic at the LA port continues to expand (short):
    http://mjperry.blogspot.com/2011/01/port-of-la-sets-new-export-record-in.html

    Global production and trade at record highs (short):
    http://mjperry.blogspot.com/2011/01/world-industrial-output-is-above-pre.html

    More on M2 growth (medium):
    http://scottgrannis.blogspot.com/2011/01/evidence-of-monetary-excess-is-elusive.html

Politics

  Domestic

Here is another example where Obama could apply His new found enthusiasm for deregulation (short):
http://www.newsweek.com/blogs/kausfiles/2011/01/20/one-america-two-languages-obama-s-backdoor-bilingualism.html

    The Obama/Immelt (GE CEO and new head of the Council of Jobs and Competitiveness) connection (medium):
    http://www.powerlineblog.com/archives/2011/01/028187.php











Posted 01-24-2011 8:21 AM by Steve Cook