Daily Market Snapshot
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| Back to bad. |
Concerns about a China slowdown and European Debt worries weighed on the markets according to the talking heads.
Market Direction Model
Better than expected earning reported by the JP Morgan fell on deaf ears as the stock market declines once again.
So Goes the Leading Stocks - So Goes the Market
When trying to gauge the health of the market it is a good practice to pay attention to how the market leaders are doing. Their strength or weakness can deliver possible clues about where the market goes next. Ian Woodward, market analyst and HGSI group mentor, refers to these leaders as canaries in a coal mine.
Canary in a Coal Mine
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| Apple Rolled over today. |
The Woody Indicator
(Volatility Indicator $VIX)
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| Volatility Spikes again. |
Failed Upside Breakout
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| Nice bounce - but failed to follow through. |
For the moment the market seems to be primarily focused on comments made by individual Fed governors concerning monitary policy and little else. With the high level of volatility, failed breakouts and canaries suffering I think it is best to maintain a high level of cash for the moment.
Blog Addendum 04 14 2012
Fred Richards, HGSI forum member and former Harvard Professor, provides our group with a weekly newsletter. Fred is a valuable resource to the HGSI group. I thought I would share his most recent newsletter (I received it after writing today's blog); the link is below.
A lot of the newsletter is pretty technical, but there are two sections I would like to draw your attention to:
1. Comments about the real rate of inflation as opposed to what the government reports. (I think we are already aware of this discrepency)
2. Comments about APPLE rolling over.
http://www.gerritzwealthmanagement.com/wp-content/uploads/2012/04/Musings041312.pdf
This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.
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