The weekly index charts for the S&P500 (SPX), the Dow Jones Industrial Average (DJIA), and the NASDAQ Composite (COMP) indicate that we are continuing our upward march. The equity indices charts are still showing healthy OBV and MF patterns for both the daily and weekly charts. The weekly money flow actual statistics are still confirming that.
As for 10-year bond yields (TNX) and the 30-year one (TYX), both continued their pullback from the recent highs, while the Gold ETF (GLD) had an overall good week. I am a bit confused here, and would change my previous belief that bond rates and Gold should revert to their (up-trending for rates, down-trending for Gold) longer moving averages in the coming weeks, as they are continuing their slow zigzagging journeys (upwards for rates, and downwards for Gold) to a more neutral stand and wait for more data and action.
You see, we still need to get fresh data (NYSEARCA:CPI) now that the government shutdown is over, as the latest CPI numbers are still those for August. Further, the Federal Reserve Balance sheet history continued its upward march from $3,813,599 on October 16 to $3,839,033 million on October 23, clearly not abating. Further, this puts the September-to-October increase at more than $100,000 million; which is more than the $80+ we are counting on. In short, one needs to be careful in case The Fed is seeing something we are not.
My usual tables follow. This is as of the end-of-day October 25, 2013.
|Index/ETF Symbol and Name||Daily 3-EMA-7||Weekly 3-EMA-7||Perceived Trend|
|SPX||S&P 500 Index||Up||Up||Positive|
|DJIA||Dow Jones Industrial Average||Up||Up||Positive|
|COMP||NASDAQ Composite Index||Up||Up||Positive|
|GLD||SPDR Gold Trust ETF||Neutral||Down||Positive|
|VIX||CBOE Volatility Index||Down||Neutral||Negative|
|TNX||CBOE 10 Year Treasury Note Yield Index||Down||Up||Negative|
|TYX||CBOE 30 Year Treasury Bond Yield Index||Down||Up||Negative|
Important to note that TNX and TYX move in the opposite direction of the underlying treasuries (Positive for Yield is Negative for Bond price).
The per equity tables are below. My Oscillator stands at 20, which is fairly bullish.
|Symbol and Company Name||Daily 3-EMA-7||Weekly 3-EMA-7||Perceived Trend||Is a Current Holding?|
|jcp||JC Penney Company, Inc.||Down||Down||Negative|
|jpm||JPMorgan Chase & Co.||Up||Up||Neutral||Yes|
|gs||The Goldman Sachs Group, Inc.||Neutral||Up||Positive|
|nly||Annaly Capital Management, Inc.||Up||Down||Positive||Yes|
|mo||Altria Group, Inc.||Up||Up||Positive|
|vz||Verizon Communications Inc.||Up||Neutral||Positive|
|gps||The Gap, Inc.||Down||Down||Negative|
|anf||Abercrombie and Fitch Co.||Neutral||Down||Neutral||Yes|
|dis||The Walt Disney Company||Up||UP||Positive||Yes|
|mdlz||Mondelez International, Inc.||Up||Up||Positive||Yes|
|ba||The Boeing Company||Up||Up||Positive|
|lmt||Lockheed Martin Corporation||Up||Up||Positive||Yes|
|de||Deere & Company||Up||Neutral||Neutral|
|emr||Emerson Electric Co.||Up||Up||Positive|
|dow||Dow Chemical Co.||Up||Up||Negative|
|adm||Archer, Daniels, Midland, Co.||Up||Up||Positive||Yes|
|pot||Potash Corp. of Saskatchewan Inc.||Neutral||Down||Negative||Yes|
|bmy||Bristol-Myers Squibb Company||Up||Up||Neutral|
|csco||Cisco Systems, Inc.||Down||Neutral||Negative|
|ngg||National Grid plc||Up||Up||Positive||Yes|
|wmb||Williams Companies, Inc.||Up||Up||Positive||Yes|
|wm||Waste Management, Inc.||Up||Up||Positive|
|nsc||Norfolk Southern Corp.||Up||Up||Positive|
IMPORTANT DISCLAIMER: It is important that you understand and agree that all information provided in this newsletter rely on publicly available data and tools with no guarantees of quality or suitability for any purpose, and that I can be long or short in any of my trading-set equities, at any time, with or without regard to indicated trends and described analytics, and that I do not give buy or sell or any other financial recommendations, and that any and all actions based on this commentary are solely the responsibility of the reader.