After disappointing job numbers this past week and a relentless Euro crisis, the S&P 500 closed lower for the week and seems likely to retest the 50-day moving average. But despite the bad news, the index is still is on more solid footing technically than it was a few weeks ago, when the 200-day MA was breached. The index is [...]
The employment report last week showed that the US economy added a mere 80,000 jobs in June with the unemployment rate stuck at 8.2%. Other economic reports last week showed similar trends toward unchanged and if you look back over the entire time since the end of the crisis portion of this great recession, the striking thing is how little [...]
By John L. Chapman, Ph.D. July 6, 2012 Washington, D.C. The new data on the economy this week suggest continued growth – in the 1.4-2.2% per annum range. Events in Europe will continue to have an outsized effect on investor psychology in the U.S., capping the upside to growth and valuations both. And, 2nd quarter corporate profits will be telling. [...]
From friend of Alhambra, Brian Cronin: It is said that a utopian Europe is one where the police are British, the mechanics are German, the chefs are French, the lovers are Italian and the organizers are Swiss. The nightmare dystopian Europe would find that the chefs are British, the police are German, the mechanics are French, the organizers are Italian [...]
Thinking Things Over July 1, 2012 Volume II, Number 26: It’s a Trader’s World Now By John L. Chapman, Ph.D. Washington, D.C. “[The EU Summit produced] the first signs that collectively they are starting to understand the issue. If you come out of a summit like this and the mood improves, it means everything rises. The challenge, as [...]
The consensus opinion going into last week was that Obamacare the Patient Protection and Affordable Care Act would be struck down by the Supreme Court in a partisan decision and that the EU summit would end with no substantive agreement on how to address the banking crisis in Europe. As it turns out, both of these consensus positions appear to [...]
The S&P 500 Cap-Weighted Index blew through heavy resistance this past week, after surprising news from Europe. The index broke through the 50-day moving average and the 1350-1360 level. It has returned 9.58% so far this year. The S&P 500 Equal-Weighted index ((RSP)) is set up so that every stock in the index has the same weight, thereby eliminating market-weighting’s [...]
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