2/22 Morningline

Blue-chip stocks (SPY) opened at Friday's high before dropping down to the level of Friday's close. The exchange-traded fund, which tracks the S&P 500, has been in an uptrend for 10 days, rising 6.1%. Today is the fourth intra-trend retracement.

SPY shows a still-strengthening bull trend on the macd, with the money flow index at 62, well below the overbought line at 80.

Treasury long-bonds (TLT) opened in the middle of Friday's range and barely moved. The price has been rangebound for three days, the macd bear signal is weakening for the second straight trading day, and the money flow index is at 39, well above the oversold line at 20.

Stocks this morning appeared to be waiting for the sound of Big Ben.

This is Bernanke Week on the Hill. The Fed chairman testifies three times before congressional committees -- today about whether new stimulus is needed, and Wednesday and Thursday on monetary policy. Bonds and the dollar are most sensitive to what he says, and stocks are to a lesser extent. This morning the dollar is stronger against the euro (EUR/USD) and weaker against the yen (USD/JPY), slightly in both cases. Gold (GLD) is rangebound for the fifth trading day, with a weakening macd bull signal and a money flow index at 42, the mid-range between overbought and oversold. Let's run the numbers: Indicators, at about 10:10 a.m. Eastern: Blue chip stocks etf (SPY) is trading at $110.84, entered macd bull mode at close on Feb. 15 (at $109.74) Fear index or volatility (VIX) 20.99, bear (bullish for stocks), Feb. 12 (22.73)

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• Treasury long bonds (TLT) $89.31, bear, Feb. 9 ($91.18)
• Corporate junk bonds (JNK) $38.87, bull, Feb. 18 ($38.40) 
• Emerging markets (EEM) $39.40, bull, Feb. 16 ($39.43)
• Gold (GLD) $109.06, bull, Feb. 12 ($107.04)
• Oil (USO) $38.85, bull, Feb. 10, ($36.51)

Forex currency pairs:

• Dollars per euro (EUR/USD) $1.3583, bear, Jan. 26 ($1.4070)
• Yen per dollar (USD/JPY) ¥91.14, bull, Feb. 16 (90.13)

Stock option holdings, March expiry:

• AKS, iron condor (p19/-p20/-c25/c26), $23.45, bull, Feb. 12 ($21.68)
• CAL, covered call (-c19), $20.30, bull, Feb. 16 ($19.88)
• CSCO, iron condor (p22/-p23/-c25/c26), $24.30, bull, Feb. 8 (23.50)
• GCI, covered call (-c15), $15.16, bull, Feb. 18 ($15.27)

Income shares:

• AOD, long shares, $8.49, bull, Feb. 19 ($8.46)
• NLY, long shares, $17.81, bull, Feb. 17 ($17.50)

Zombie shares:

• CVS, long shares, $34.16, bull, Feb. 12 ($32.99)
• MCO, long shares, $26.91, bear, Feb. 5 ($27.34)
• PALM, long shares, $9.25, bear, Jan. 26 ($11.17)

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