5/17 Morningline

All indicators are trading narrowly within Friday's range. It's the usual stunned reaction after a major, somewhat devastating move. Oil (USO) is the exception, trading below the range.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
SPY $114.26
VIX 31.06
TLT $94.78

At 9:45 a.m. Eastern

If traders were rational beings, then the large move would have happened for rational reasons, and the next trading day, we would all move on, unstunned, to the next set of rational decisions.

It doesn't work that way.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
JNK $38.47
GLD $120.65
USO $34.38
EEM $39.46
EUR/USD $1.2447
USD/JPY ¥92.51

At 9:54 a.m. Eastern

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The Investor's Guide to Active Asset Allocation: Using Technical Analysis and ETFs to Trade the Markets

Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.

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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
SPY - blue-chip stocks
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
mfi - Money Flow Index
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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