8/13 Morningline

• Cash dollars are losing value at an annualized rate of 3.5%.
• High-yield corporate debt moves to bull phase on the fast stochastic (JNK).
• Dollar moves to parabolic sar, macd bull phase against the yen. but it's ghosting (USD/JPY).
• Emerging markets show bull phase on the fast stochastic (EEM).

Stocks and Rates

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
SPY
QQQQ
VIX
TLT
JNK

Consumer prices in the U.S. rose 0.3% in July. Analysts are chattering that it lessens the risk of deflation, but who really knows. What it does mean is those $20 bills you're hording in an old cigar box? They're losing value at a rate of 3.5% per year. A bad investment, cash.

Corporate junk bonds mainly track confidence that companies will be able to pay their debts. So if the fast stochastic bull signal is followed by a the less volatile signals, then it means that bond traders are starting to think their money is safer that it was before.

Below, oil and gold, and global indicators.
Oil and Gold

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
USO
GLD

Global

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
EUR/USD
USD/JPY
EEM

The bull signals for the dollar against the yen are potentially the beginning of a break in a long-running decline. But the currency pair has whipsawed before, and even longer bullish reversals on the signals, since May, haven't meant much of a price rise.

The signal began ghosting shortly after it appeared. That means it disappeared, and reappeared and played Cheshire cat on the chart. If the signal exists at 4 p.m. Eastern, then the dollar is considered to be in bull phase against the yen according to the (somewhat arbitrary) rule.

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.