- Long-term Treasury bonds (TLT): Person's Proprietary Signal flashes bear.
- Gold (GLD): Fast stochastic dips into overbought territory.
Stocks and Rates
The TLT bear signal on the pps kicked in late Friday. Lower bond prices, reflected in TLT, translate into higher interest rates. Friday's price action pierced the 20-day simple moving average, and TLT this morning has opened beneath that level.
Below, oil and gold, and global indicators.
Oil and Gold
The fast stochastic's move below the 20-line on GLD creates potential for a bull signal when the sto again rises through that line back into the neutral zone. Until the 20-line is recrossed, the fast sto remains in bear phase.
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we reemerge from the wreckage.
Indicator Exchange-Traded Fund Symbols:
EEM - emerging markets
EUR/USD - euro/dollar currency pair
GLD - gold
JNK - high-yield corporate bonds
QQQQ - Nasdaq 100 index
SPY - S&P 500 index
TLT - Treasury long-term bonds
USD/JPY - dollar/yen currency pair
USO - crude oil
VIX - fear index
- 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.