Monday, July 26, 2010

7/26 Morningline

  • Long-term Treasury bonds (TLT): Person's Proprietary Signal flashes bear.
  • Gold (GLD): Fast stochastic dips into overbought territory.

Stocks and Rates
trendadxpsarppsmacdmacd
trend
stosto
trend
SPY
QQQQ
VIX
TLT
JNK

The TLT bear signal on the pps kicked in late Friday. Lower bond prices, reflected in TLT, translate into higher interest rates. Friday's price action pierced the 20-day simple moving average, and TLT this morning has opened beneath that level.

Below, oil and gold, and global indicators.

Oil and Gold
trendadxpsarppsmacdmacd
trend
stosto
trend
USO
GLD

The fast stochastic's move below the 20-line on GLD creates potential for a bull signal when the sto again rises through that line back into the neutral zone. Until the 20-line is recrossed, the fast sto remains in bear phase.

Global
trendadxpsarppsmacdmacd
trend
stosto
trend
EUR/USD
USD/JPY
EEM



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Indicator Exchange-Traded Fund Symbols:
EEM - emerging markets
EUR/USD - euro/dollar currency pair
GLD - gold
JNK - high-yield corporate bonds
QQQQ - Nasdaq 100 index
SPY - S&P 500 index
TLT - Treasury long-term bonds
USD/JPY - dollar/yen currency pair
USO - crude oil
VIX - fear index


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
  • 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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