Memorial Day Weekend May 25, 22019
See our previous post about a three year low in the Purchasing Manager index
In today's Weekend WSJ
- Brexit Strife Forces May Departure
- FAA Broadens Boeing Probe
- Tesla down 42% this year, closes under $2000
- Factory Orders point to slow down
- Deming New Mexico Strains to Handle Migrants
- Dissenter Stops Disaster Aid Bill
- War Spreads to Iran's Adversaries
- US China Rift clouds Japan's Economic Outlook
- Franchises are in Union Crosshairs
- China Tech Champion or Serial Theif
- Wall Street Isn't Buying What Silicon Valley is Selling
- Dow Declines for 5th Week
- Oil and Copper Prices Decline
And here in San Antonio the Governor of the State has the FAA investigating the SA City Council kicking Chik Fil A out for not serving on Sunday, Governor says this violates Chik's religious grounds, Council dislikes opposition to gay marriage, do we have enough rules here?
Point being, taken together this is all reflective of growing negative mood. And mood drives the markets.
Percent of Stocks above MA
On the weekly chart PMO is toppy, not a great spot to initiate a new position. Stocks did not turn down below 25,200 Friday so expect more congestion.
NYSE Daily Advance Decline
The advance decline line flattens and the MAs draw closer together
Momentum via MACD and RSI has weakened.
Weekly
Here MACCD is toppy. The chart looks a lot like last Sept Oct, toppy.
Transports
Transports made a lower high and are now under all four MAs, PMO is negative, not good.
Russell 2000
Russell 2000 barely got over its 200 day MA and is now falling, PNMO also going negative.
I don't see any reason to be long the major indexes. Utilities and REITs are hitting new highs in defensive position but I don't see buying them at new highs either.
DUG Short Oil and Gas
Dug is flashing a buy signal, this is a bear fund for oil and gas shares.
HAL
A re test of the 2009 low is not out of the question for the 2nd largest sesrvice firm. And the price of oil now is higher than at the previous 2016 low.
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