Higher bond prices mean an expectation of lower interest rates, and that's in line with Fed Chairman Ben Bernanke's speech in Dallas today in which he said that the U.S. economy is "far from being out of the woods."
That suggests the Fed won't raise short-term rates anytime soon.
The TLT price was on the rise before Bernanke began speaking. Was the speech leaked? Was the zeitgeist blowing through Wall Street?
Blue-chip stocks (SPY) took in all in stride and continued to trade narrowly within yesterday's range. A yawner.
Gold (GLD) continued to rise, oil (USO) fell.
Bears fared badly on the Watchlist: One failure and one wash. Also, no news on the bull side.
Stocks that showed Parabolic SAR bull signals:
- * BBY, analysis. New today.
- * HPQ, analysis.
- KRE, analysis.
- SPY, analysis.
- USO, analysis.
- XLE, analysis.
- XLF, analysis.
- XRT, analysis.
Stocks showing a Parabolic SAR bear signal:
- BBY, analysis. Flipped to a bull signal after four trading days in bear mode. The bear signal was a FAILURE 4% loss. Note that the bear signal was counter-trend and so prone to whipsaw.
- JNJ, analysis. I pegged this as an iron condor, with max profit between $62 and $65. It has moved above $65 will full bull signals. I think this signal should be declared as a WASH with the price 0.5% above the max profit range. As a directional play, the price is 1.2% above theoretical entry.
Market analyst Kenneth Posner creates a new framework for managing extreme risk based on lessons learned in the recent collapse of capitalist finance.
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