5/10 Morningline: Other Indicators

The indicators are behaving as I would expect, given a resolution of the euro crisis. For the euro crisis cast doubts on two elements important to valuing stocks and bonds: The worth of the dollar against other currencies and the consequent ability of companies to compete in world markets.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
JNK $38.82
GLD $117.05
USO $37.11
EEM $40.55
EUR/USD $1.2872
USD/JPY ¥93.16

At 10:06 a.m. Eastern

The decline of euro during the crisis strengthened the dollar, both against the euro and as a presumed safe haven for value in uncertain times. A stronger dollar means U.S. goods cost more abroad, hindering the ability of American exporters to profit from competitive prices.

So, high-yield corporate debt (JNK) is up 2.1%, because a weaker dollars means fewer defaults on debt, gold (GLD) is down 1.1% because the end of the crisis lessens its attractiveness as a protector of value, oil (USO) is up 1.1% because a weaker dollar means it takes more of them to buy a barrel of crude. Emerging markets are up 6.4% because . . . Well, I'm not sure. Emerging markets continually baffle me. I'm presuming that greater economic stability means the richer nations will be more able to buy emerging markets' goods and to invest in their economies.

The euro is up against the dollar, by about 1%, as a direct result of the easing of eurofears, and the dollar is up against the yen by 1.8%.

Only one of the indicators, EEM, showed a new signal: The parabolic sar flipped into bull phas.

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Skynet Panic of May 6
Panic Looks Like This
Skynet Panic Poisons Technical Tools

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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