4/8 Morningline: Stocks and Bonds

Stocks and bonds plunged through the looking glass sometime overnight. (Or perhaps "surged" -- it's often hard to differentiate.)

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
SPY $117.84
TLT $87.41

The blue-chip stocks (SPY) opened below yesterday's close and continued to slide for a second down-day. SPY showed a bear-phase on Person's Proprietary Signal, although the Parabolic SAR continued to shout bull. After 25 minutes of trading, the pps, like the Cheshire Cat, disappeared. Unlike the cat, it left no grin.

The 20- and 30-year bonds issued by the U.S. Treasury (TLT) opened higher than yesterday's close and continued to rise for a second up-day. Pps bull signal. Psar still in bear phase.

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Each of the two indicators, a mirror image of the other.

I usually don't bash the media until the late afternoon, but the headline over Kate Gibson's story for MoneyLine is too much fun to pass up: "Stocks start lower as investors pause after rise".

Huh? It sounds like a teeter-totter. Kate, I hope the MoneyLine Unpaid Intern wrote that headline and not a wise and experienced journalist like yourself.

Having arisen, I shall now pause to sip the coffee and then lower myself down into my chair for a serious day's work.

(sip) (my that was good)

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
mfi - Money Flow Index
sto - Fast Stochastic

Exchange-Traded Fund Symbols:
SPY - blue-chip stocks
TLT - Treasury long-term bonds

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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