12/15 Morningline

A new bull signal is showing this morning on USD/JPY, the third signal in nine trading days. The price, now 89.94, remains below resistance at about 90.20 and is trading within Friday's range.

Treasury long bonds (TLT) gapped down in price after the Bureau of Labor Statistics said the producer price index increased by 1.8%. The TLT decline prices in a likelihood that the Fed will increase interest rates sooner rather than later to stave off inflation.  (Rule of thumb: Higher interest rates, lower bond prices.)

The Fed is meeting today and will make an announcement on Wednesday, at 2:15 p.m. Eastern (11:15 a.m. Pacific).

Indicators:

• Blue chips (SPY) opens at 111.46, entered bull mode at 111.87 on Dec. 14, but with a suspicious price bar that leads me to believe that it's a spurious signal. Prior, SPY entered bear mode at close on Dec. 8 (at 109.61)
• Fear index (VIX) , 21.09, bear, Dec. 11 (21.59)
• Treasury long bonds (TLT) 91.57, bear, Dec. 1 (95.25)
• Gold (GLD) , 109.94, bear, Dec. 4 (113.75)
• Oil (USO), 35.62, bear, Dec. 4 (38.33)

Currency pairs:

• Dollars per euro (EUR/USD) , 1.47, bear, Dec. 4 (1.49)
• Yen per dollar (USD/JPY) 88.62, bear, Dec. 9 (87.86), but with a new bull signal showing this morning, confirmed by an intra-day price rise.
  

Holdings, December expiry:

• UNG, covered call (-c9) , 9.99, bull, Dec. 7 (9.22)

Holdings, January expiry

• AET, bull put spread (p31/-p32) 32.13, bull, Dec. 8 (30.47)
• HPQ, bull put spread (p49/-p50) 50.52, bull, Dec. 9 (49.95)
• KO, iron condor (p50/-p52.5/-c57.5/c60) 59.15, bull, Dec. 1 (58.08)
• VALE, bull put spread (p30/-p31), 28.89, bull, Dec. 14 (29.20)
• X, bear call spread (-c40/c41) 48.18, bull, Dec. 9 (46.74)

(Signals derived using Person's Proprietary Signal applied to daily charts.)