Wednesday, May 5, 2010

5/5 Morningline: Other Indicators

Eurolove is back! Or at least, eurolike. Or, well, maybe we don't hate her as much as we used to.

Oh, what the heck. Let's punch her in the shoulder to show that we like her.

Other indicators played the same move and retrace pattern as stocks and Treasuries. Narrative: Confidence in the euro  means a weaker dollar, eventually, and not such low prices for oil. Even so . . .

Oil (USO) had the largest decline, by 3% until it began to retrace. USO is showing a new parabolic sar bear phase.

trendadxpsarppsmacdmacd
trend
stosto
trend
JNK $38.78
GLD $113.92
USO $38.50
EEM $39.84
EUR/USD $1.2862
USD/JPY ¥94.48
At 10:19 a.m. Eastern

Gold (GLD) was down less than a percent, but it showed a new bear phase on Persons' Proprietary Signal.

Somehow these lightning fast changes in euro-confidence seem so 1984: "Oceania was at war with Eastasia. Oceania had always been at war with Eastasia. We love the euro. We have always loved the euro."

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.



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.


New to Private Trader? Check out the Reader's Guide.

New to private trading? Here's a look at How to Become a Private Trader.

No comments:

Post a Comment