5/27 Morningline

Blue-chip stocks this morning opened with the third up-gap in a row, followed, as yesterday, by narrow trading. And an intra-day decline to follow?

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
SPY $109.12
VIX 30.18
TLT $98.13

At 9:57 a.m. Eastern

Blame the upcoming holiday, maybe. The markets always get so quirky when a holiday looms. I've always suspected that the smart traders take off early, leaving the interns in charge.

Treasury long-term bonds, as usual, are moving in the opposite direction, and by almost as great a magnitude. The exchange-traded fund that tracks the Treasuries -- TLT -- is showing bear phase on Person's Proprietary Signal. The pps does tend to disappear during the day, and by the book the only "true" pps signal is that showing at the close of the analytical period, for me, the day. Otherwise, it's a ghost.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
JNK $37.45
GLD $118.65
USO $33.46
EEM $37.78
EUR/USD $1.2210
USD/JPY ¥90.66

At 10:00 a.m. Eastern

Other new signals:

The VIX (the "fear index") shows a macd moving below the zero line for the first time since April 16. As a market environment indicator, this would be a sign of bullish sentiment. One trading method is to use the VIX to time entries and exits. A trader entering a bear position on the S&P 500 on April 16 and exiting at today's open would have seen a 5.7% gain.

Emerging markets is showing a pps bull signal this morning. (Insert the usual caveats about ghost signals here.) It entered bear phase on May 14.

Crude oil (as opposed to polite oil?) also shows pps bull phase. It entered bear phase on May 4.

All about the euro: How it got here, where it's going.

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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
• 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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