6/1 Morningline

Blue-chip stocks gapped lower at the opening and are trading two-thirds of a percent below Friday's close. The decline comes on the second day after Person's Proprietary Signal moved into bull phase, a change unconfirmed by the parabolic sar.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
SPY $108.60
VIX 34.33
TLT $97.19

At 9:45 a.m. Eastern

Treasury long-term bonds, in their normal contrarian fashion, gapped higher and are trading narrowly about three-fourths of a percent above Friday's close and two days after a pps bear signal unconfirmed by the psar, which remains in bull phase.

Welcome to June. It looks much like May.

Gold and the fear index (VIX) are up; everything else is down, although none at this point have fallen by as much as 1%.

Gold is showing a new bull phase on the psar, combined with a gap up that has brought the price at some points this morning more than a percentage above Friday's close. The phase switch brings the psar and pps back into alignment after three mismatched trading days.

High-yield corporate debt -- junk bonds -- are showing the same mixed signals as stocks and government bonds, with the pps pointing one way (bull, in junk bonds' case) and the psar the other way.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
JNK $37.29
GLD $119.97
USO $33.97
EEM $37.90
EUR/USD $1.2224
USD/JPY ¥91.11

At 9:50 a.m. Eastern

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

---

The Great Reflation: How Investors Can Profit From the New World of Money
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we remerge from the wreckage.

---

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.

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.