Tuesday April 23 2013
Again we refer you to the recent articles on Caterpillar. With lower earnings and lower stock price the best idea CAT has is to buy back its own stock. Companies cannot report gains on their own stock transactions. Calling this a reward to stock holders, who afer all bought the stock in anticipation of higher prices seems a bit bizarre.
Samsung took out eight full page ads in the WSJ today, the day Apple earnings are due after the close of trading. I believe I count a third wave about done in Apple which suggest some sideways action on the earnings announcement but I am not making any bets.
Gold is as beat up as Apple, and there are numerous articles that physical demand for gold is strong.
GLD
The chart of paper gold GLD continues to look like a fourth wave. Other metals plays are experiencing a weak bounce as well. it may be a long shot to bet on further weakness here but we still don't see any strength. Note the lack of volume. I am still thinking this is forecasting deflation ahead.
Copper remains weak and oil bounced in a fourth wave on its daily chart.
US Dollar
The three moving averages converged and now the dollar appears to be moving higher. It appears the red 13 day MA could move above the green 34 day in the near future. That would lead to weaker commodity prices. The weak commodity rebounds are happening while the Dollar consolidates. Note the third higher level of the MACD and it is curling up. The Dollar is key to what is happening.
NASD Summation Index
The internals of the NASD market continue to deteriorate. As I noted how long can the NASD 100 stay up with this happening?
We will report after the Apple Earnings come out.
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