- "Fear index" VIX gives bull flash on fast stochastic.
- Treasury long-term bonds move to bear phase on parabolic sar (TLT).
- Crude oil turns bearish on Person's Proprietary Signal phase switch (USO).
Stocks and Rates
A rising VIX, as the fast stochastic signal suggests, leads to falling blue-chip stock prices. The psar bear phase on TLT brings all major signalers into a bearish configuration. Declining bond prices mean rising interest rates (and can also mean falling stock prices, as bond yields become more competitive).
Below, oil and gold, and global indicators.
Oil and Gold
So far the pps signaler stands alone in the bear column on USO.
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.