- All things corporate take a dive.
- Bear signals on the S&P 500, Nasdaq 100, high-yield corporate debt, euro and emerging markets (SPY, QQQQ, JNK, EUR/USD, EEM).
- Oil down but no new signal.
- Bull signal on the fear index (bullish on fear, how scary is that) (VIX).
- 20- and 30-year Treasury bonds price up, yield down (TLT)
- Yen continues rise (USD/JPY).
Stocks and Rates
Stocks fell yesterday when the Fed announced its tepid response to a slowing of the recovery, and quickly rose again. But it seems that after a troubled night filled with evil dreams, traders concluded that the situation is actually worse than it seemed at first blush.
And that, I think explains today's unrelenting negativism toward everything except safe havens like Treasury bonds and gold (plus the ever resilient Japanese yen)
Happy days? Here again? Not a chance.
Below, oil and gold, and global indicators.
Oil and Gold
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.