Friday Nov 29 2013
We refer readers to the column Ahead of the Tap on page C1 of the WSJ today.
Surging Stocks Don't Pass the Sniff Test
73% of stocks are over their 50 day MA...best year gain in the last 16 years...but investors are simply willing to pay more dollars for each collar of earnings...
THere is surely a typo error in the next to last paragraph where Jakab states ' 520 week highs are four times that of lows but in Oct 2007 the ratio was 60 times. That struck me as an incredible impossibility so I ran the graph.
Recall our contention that the internals of th market peaked last April. And that is when MACD did peak. But this year the NYHL has been consistently higher than in Fall 2007.
Money Flow Dow Diamonds
Money Flow has exceeded the top seen in 2007 peaking again this past spring. And notice the average itself is further above the ribbon of MAS than it was then. But up is up and the trend is still in that direction. As long as the FED has the money spigot flowing the money has to go somewhere, and into stocks it has been going.
Bullish Percent
Despite what I read in the papers about expanding breadth, it sure looks like fewer stocks are hodling up to me, or am I just mis reading this chart? Again the internal peak was last May.
We are headed to Corpus Christi for the weekend. Construction there for shipping oil exports is now in the billions. I look foraward to snooping around.
No further report until late Sunday.
Oh one more thing. On the news of the Iran deal there were reports that it would take months for Iran to ramp up its oil exports. Maybe not. On page A9 in the WSJ today
Turkey Sees Boon From Iran Accord
Turkish hotels are filling up with Iranian tourists. Iran may reap as much as $4.2 B from energy exports, and that is according to our White House. Turke will increase oil imports by 30% from Iran. And so a lot more supply is dumped on the already saturated world market. Oil is down to its 200 week MA. And as we noted in another post this week, this is amid a terrible snow storm in the Northeast. It is hard to see the price of oil rallying. While many may cheer lower prices at the pump the boom around the country via fracking depends on a sustained high price.
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