Wednesday, April 7, 2010

4/7 Morningline: Stocks and Bonds

Blue chip stocks (SPY) and Treasury long bonds (TLT) are each trading narrowly within yesterday's range. And why not? The econ news today won't come until late in trading, and it's really not very big news.
trendadxpsarppsmacdmacd
trend
stosto
trend
SPY $118.90
TLT $87.41
At 9:50 a.m. Eastern

Uptrending SPY will need to exceed $119.25 in order to maintain the present series of high highs for a fourth day. Downtrending TLT will need to fall past $87.35 to maintain its series of lower lows for a fourth straight day.


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Market analyst Kenneth Posner creates a new framework for managing extreme risk based on lessons learned in the recent collapse of capitalist finance.



The SPY macd, although in bull territory, today retreated toward the zero line.

The one significant econ report of the day, consumer credit, is due for release at 3 p.m. Eastern It has not been a big market mover, but it does give some indication of the extent to which consumer debt will dampen spending.

It's hard to shop till you drop if your cards are maxed out.

Fed Chairman Ben Bernanke gives a speech in Dallas at 1:30 p.m.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic


About the glance: The colors indicate the state of each signal.

  • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
  • adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
  • psar, pps, macd: green for bull mode, red for bear
  • sto: green for overbought, red for oversold, yellow for the neutral zone.


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