All American Investor

The MarketTechnicalThe indices (DJIA 12529, S&P 1320) had another schizophrenic day---down early, then rallying late in the day. They remain well within their intermediate term uptrends (11686-16686, 1226-1793) and closed for the second day above their very short term downtrends. The longer the Averages remain above 12344, 1292, the more authority this level gains as the lower boundary of the short term trading ranges.Volume was down, as was breadth. The VIX fell and while it is well above...Read Full Story

The Market Technical The indices (DJIA 12496, S&P 1318) pin action the last two days has been about as confusing (to me) as it could be. Before going into that, it is important to note that they remain well within their intermediate term uptrends (11668-16668, 1226-1793). As for the short term, recall that Tuesday, the Averages traded above the descending very short term downtrend, then failed to hold. I concluded that pin action pointed to more downside. And yesterday the trading for the...Read Full Story

Economics This Week’s Data April new home sales rose 11,000 versus expectations of a 7,000 increase. http://www.ritholtz.com/blog/2012/05/housing-permits-starts-completions-2/ Weekly jobless claims came in flat as anticipated. http://www.calculatedriskblog.com/2012/05/weekly-initial-unemployment-claims_24.html April durable goods orders rose 0.2% versus estimates of up 0.5%; ex transportation, they fell 0.6% versus forecasts of an increase of 0.7%. Other Leading economic indicators in...Read Full Story

The Wall Street Journal at 1701 Page Mill Road in Palo Alto, California. (Photo credit: Wikipedia) Tim Duy: Rumors and Threats, by Tim Duy: From the Wall Street Journal's MarketBeat blog this morning: “We’re now in a very sentiment-driven, rumor-driven, nonsense-driven market that’s prepared to grasp onto anything,” Dow Jones’s Katie Martin said this morning on the Markets Hub. One of the only things holding the euro up, she said, is the so-called “announcement risk,” the fear that the...Read Full Story

The Market Technical Monday Morning Chartology As you can see, the S&P is approaching a range with multiple support levels. With this kind of congestion, I expect a slow down in the rate of decline and, hopefully, the establishment of a new lower boundary of its short term trading range. GLD makes a great rebound. Notice the similarity to the late December/early January sell off and bounce. http://www.zerohedge.com/news/why-has-gold-fallen-price-and-what-outlook The VIX soared again on...Read Full Story

The MarketTechnicalAfter spending most of the day in plus territory, the indices (DJIA 12502, S&P 1316) finished flat on the day. They both (1) remain well within their intermediate term uptrends (11664-16664, 1225-1792) and (2) continue to probe for a lower boundary to their short term trading ranges (?-13302, ?-1422).In addition, they both challenged the very short term downtrend (12513, 1320) and failed to hold above those resistance points.Volume weakened, as did breadth. The VIX rose...Read Full Story

Economics This Week’s Data The International Council of Shopping Centers reported weekly sales to major retailers down 1.7% versus the prior week but up 3.8% versus the comparable period last year; Redbook Research reported month to date retail chain store sales up 2.7% on a year over year basis. April existing home sales rose 3.4% versus expectations of an increase of 2.6%. http://scottgrannis.blogspot.com/2012/05/more-signs-of-housing-upturn.html http://www.ritholtz.com/blog/2012/05...Read Full Story

EconomicsThis Week’s DataOtherChinese buyers defaulting on commodity shipments (medium):http://www.zerohedge.com/news/chinese-buyers-defaulting-commodity-shipments-prices-plungeWeekly gasoline update (short):http://advisorperspectives.com/dshort/updates/Gasoline-Update.phpVehicle miles driven (short):http://advisorperspectives.com/dshort/updates/DOT-Miles-Driven.phpPoliticsDomesticMore on the tax math of ‘ex-patriot’ Facebook founder (short):http://www.powerlineblog.com/archives/2012/05...Read Full Story

The MarketTechnicalThe indices (DJIA 12504, S&P 1315) finally rallied, remaining within their intermediate term uptrend (11651-16651, 1224-1791). However, they are searching for a lower boundary to their short term trading range (?-13302, ?-1422).Yesterday had all the feel of a relief rally/short covering; and we could very well witness some follow through before stocks again resume their search for a short term lower boundary. The key levels to watch as price rise are 12548, 1329---which are...Read Full Story

The MarketTechnicalThe indices (DJIA 12442, S&P 1304) had another ugly day, the Dow closing below 12744 for the fourth day, the S&P below 1338 for the third day. The DJIA has now satisfied its time element of our time and distance discipline (thereby confirming the break below 12744) while the S&P will follow suit at the close today.Assuming that occurs the following are the next likely support levels: (1) their 200 day moving averages [12198, 1278], (2) the neckline of the reverse head and...Read Full Story