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


Have You Seen This?


  • Make money by accessing all our Portfolios, the supporting research and Price Disciplines using our paid subscription blog, Strategic Stock Invetments. Our work is focused on making money for our Portfolios not as some academic exercise in Internet investing. Check our performance (audited)--our Dividend Growth Portfolio has beaten the S&P by 500 basis points per year for the last seven years but with a beta of only .62. (Mandatory Disclaimer: past performance is not a guarantee of future results.) We give you everything you need to duplicate our results, in particular, a strict price discipline for both Buying and Selling.

Have You Seen This?

The Market

      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.


   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.


    The ECRI weekly leading index drops again--this is not a good sign (short):

    C&I loans continue to expand, albeit at too slow a pace (short):

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