jump to navigation

05252010 May 25, 2010

Posted by easterntiger in economic history, economy, financial, gold, markets, stocks.
Tags: , , , , ,

Weather Report Interim 05252010

Current Positions  (Changes)

I(Intl) – exit; S(Small Cap) – exit; C(S&P) – exit ; F(bonds) exit;  G(money market) – remainder

Weekly Momentum Indicator (WMI***) – last 4 weeks, thru 05/25   -38.74, -42.91, -52.72, -23.43

(3wks ago/2wks ago/1 wk ago/this week)

They call this ‘profit taking’ and it works for everyone when you know how to take advantage of it.

Since early April, the F fund (bond prices, inverse of interest rates) has been in the process of making one of it’s largest moves since the crisis in the fall of 2008.  While F fund moves are never in the ranges
(double digits) in a short time frame as equities, the moves are usually sustained and don’t have to be watched as carefully as those in equities either -they won’t turn on you as a stock move will do.

The full weight of decreasing confidence in the Euro has caused a run for dollars and safety, reducing interest rates, oil (26% lower in one week – why is gasoline only down a nickle or a dime a gallon???) and other consumption  based commodity prices, and, obviously, stock prices, with the Dow & S&P, as well as the Nasdaq, London’s FTSE, Brazil’s Bovespa, Argentina’s Merval, and several Asian markets going below their May 7th lows and approaching lows of last October.

I’ll take a pause with a little bit of ‘change’ from the past two months and take another look around when I have the advantage of 2-4 moves over the next 40-60 days.



No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: