Friday, October 18, 2013

And yet a few more newsbits

Bespoke - back to overbought. More on my $VIX point from earlier this morning. And yet:

FT Alphaville - taper delayed because data delayed. Seems like this means the market will have many days of running on nothing but hopes and dreams, til the data starts coming back and whacking people with the mackerels of reality. Like thus:

WSJ Moneybeat - Ralph Acampora is comfortable being bullish again. Apparently TAs are supposed to care what Acampora says. And here's what he says:
Ralph Acampora, director of technical research at wealth management company Altaira, is back to being bullish because of the old Wall Street adage, “Don’t fight the tape.”

Mr. Acampora pointed out that a number of key market indexes have recently reached new bull market highs, including the Russell 2000 index of small-capitalization stocks, the Nasdaq Composite and the Dow Jones Transportation Average. The S&P 500 index was heading for a fresh record high close on Thursday, and he said the Dow Jones Industrial Average should do the same, shortly.
Ah, the old "don't fight the tape" strategy! Looking at what direction the market is going in, and then assuming that a turn-around isn't always right around the corner! The first data point of technical analysis: price!

Michael Shaoul - Bloomberg financial conditions index. Quote:
Since mid September US Financial Conditions (as measured by the Bloomberg US Financial Conditions index) have continued to improve, with the index actually registering a new all time high of 1.58 on Wednesday (5 years and one day after the index made its record low at -12.67), before falling back slightly to 1.47 this morning. Perhaps more importantly these readings are not the product of a brief blip, since the trailing 10 week ma has now reached an all time high of 1.34, while the 52 week ma is 1.04, the first time this measure has averaged over +1 for an entire year.

In our opinion the length of time that conditions have remained strongly positive is perhaps more important than the level itself, since it generally takes some time for financial conditions to start to filter through to actual economic activity.
FT beyond brics - China's overcapacity strategy. - Draghi says central banks would be unwise to sell their gold reserves. Hey Tekoa, no surprise here: he was born two and a half years after Italy's WWII collapse, so he knows all about why central banks need to keep gold on hand.

Reuters - India's September jewelry exports rise 16.5%. Basically, the gold import rules have been straightened out, so the jewellers can make jewelry again.

Oh and Dear Mineweb: all the stupid popup boxes on your site have now made it impossible for me to read any of your articles on my Android smartphone. I will be unable to link to your articles anymore until you get rid of that garbage.

No comments:

Post a Comment