Chartist Friend from Pittsburgh: February 2012

Wednesday, February 29, 2012

The Top Is In - It's All Downhill From Here

When the market responds to the Fed chairman's testimony by selling off after making a new four year high, you know that the uptrend is finished. History is being made right before our eyes. "We have the deflation, and the deflation is VERY BAD."

DOW JONES INDUSTRIALS

OMID - THE CHANGE (Apparently Not)
"Did you hear about the Fed?"
"No, what about the Fed?"

PRODUCER PRICE INDEX PERCENT CHANGE FROM A YEAR AGO

CONSUMER PRICE INDEX PERCENT CHANGE FROM A YEAR AGO

UNIVERSITY OF MICHIGAN INFLATION EXPECTATION

Tuesday, February 28, 2012

Morgan Stanley Is The Rosetta Brick - Part 2

Consumers will always want the latest gadget, yoga pants, coffee drink or ethnic fast food, but when a banking crisis happens all that goes out the window. So I continue to focus on the chart of Morgan Stanley and its relationship to the rest of the market.

MORGAN STANLEY

NYSE NEW HIGH / NEW LOW RATIO

NYSE PERCENT OF STOCKS ABOVE 200 DMA

NYSE SUMMATION INDEX

NYSE BULLISH PERCENT INDEX

NASDAQ NEW HIGH / NEW LOW RATIO

NASDAQ PERCENT OF STOCKS ABOVE 200 DMA

NASDAQ SUMMATION INDEX

NASDAQ BULLISH PERCENT INDEX

DOW JONES US MORTGAGE FINANCE INDEX

GREECE GENERAL SHARE

Economic Data - Durable Goods Report

DURABLE GOODS - DJIA

As goes durable goods so goes the DJIA - down:

CASE SHILLER HOME PRICE INDEX

INVERSE US UNEMPLOYMENT & JOBS CONFIDENCE

Monday, February 27, 2012

Morgan Stanley Is The Rosetta Brick

I have become convinced that Morgan Stanley is the key stock to watch in this market.

It is the weakest of the investment banks and could be the next Lehman. I think if one of the global TBTF banks has to be sacrificed to appease the angry Greek gods it's going to be this one. Interesting anagram side note: Morgan Stanley = Monetary Slang

From Reuters: Morgan Stanley details effect of possible downgrade

MORGAN STANLEY