Monday Morning Chartology-8/29/11
Steve Cook on Disciplined Investing

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The Market
    
    Technical

      Monday Morning Chartology

    You can see very clearly the trends of higher lows and lower highs.  Technically speaking, the direction of a break tends to portend the direction of a new trend.




    You can also see the clear break and recovery of GLD below the lower boundary of its short term up trend last Thursday.  Usually, after a flush like GLD experienced last week, there is not an immediate snap back.  If the current recovery continues then I will have been wrong again.  However, if GLD undergoes a period of consolidation, then our Portfolios will likely re-purchase those share sold at higher prices.




    The VIX maintains its volatility but at the upper zone of its current trading range--which is not good for stocks.




   
Economics

   This Week’s Data

    July personal income was reported up 0.3%, in line with expectations; July personal spending was up 0.8%, better than forecasts of up 0.5%; the PCE price index was up 0.2%, in line with estimates.
    http://www.calculatedriskblog.com/2011/08/personal-income-increased-03-in-july.html

   Other

    The ECRI weekly leading index drops again--this is not a good sign (short):
    http://advisorperspectives.com/commentaries/dshort_82611.phphttp://advisorperspectives.com/commentaries/dshort_82611.php

    C&I loans continue to expand, albeit at too slow a pace (short):
    http://scottgrannis.blogspot.com/2011/08/bank-lending-continues-to-increase_26.html










Posted 08-29-2011 8:20 AM by Steve Cook