Mobile Internet Opportunities

Both Facebook and Apple are on buy signals in the Point & Figure way of looking at things.  Both stocks have been beaten down for the past year, and I'm inclined to give them a green light on these signals.  Disclaimers, etc.

Once More Into The Beach

I decided to move back into the market this week.  I took a position in Enterprises Products (EPD), which owns 50% of the Seaway Pipeline, and a position in Google, after their disappointing earnings report caused the price to drop.

I remain short the AUD/USD.

Monetary Policy Report

Get the full report here.  Read it and draw your own conclusions, or notice that the US$ weakened on the release of the report.  Bernanke has yet to begin his testimony.  He will have many listening carefully.

Click here for the full report from the Federal Reserve

Still Looks Toppy To Me

The New York Bullish Percent Index was created by A.W. Cohen,  the first editor of Chartcraft, in 1955.  Mr. Cohen was trying to create a market indicator that was bullish at the bottom and bearish at the top.  A worthy endeavor.  Trend charts are always bullish at the top and bearish at the bottom.  So are our emotions. When more than seventy percent of the New York Stock Exchange stocks are on buy signals,we have a bullish situation.  When the P&F chart reverses to a column of Os and breaks below 70, this generates a bear signal.  According to Thomas Dorsey (Point & Figure Charting) this is a high risk condition, calling for defensive measures, such as puts, not buying stocks, going short, etc.  This indicator gave a "Bear Confirmed" signal on June 24.  So the light turned red.   The index dropped as low as 64.  Today, however, the chart reversed to a column of Xs, closing at the 70 percent mark.  Hence the designation "Bear Correction on null," since 70 is the null point that must be crossed.

What does it mean?  The way I read it, the stockmarket still looks toppy to me.  The bias is bullish once again, but things could go either way as soon as the next week.

I'm preparing to send the offense back in.  I remain short the AUD/USD, despite the dollar's fall after Bernanke's dovish comments, yesterday.  The main story is still the Fed's next move, when it will be and what it will be.

IMF World Economic Outlook Update--Lowering Expectations a Bit

Click here to explore this data.

June 25 VIX Point & Figure Reversal

Looks like I went for the fake.  The relatively high VIX readings on June 20 spooked me into standing aside to see which way the market was going.  So far, it looks like a normal bounce, rather than a 'correction.'  On June 25, the Point & Figure chart for the VIX signaled a downward move, indicating reduced fear.

Larry McMillan, one of my favorite pundits, is making more bullish sounds, "In summary, it seems almost certain that the indicators will turn bullish, because the put-call ratio signals are generally so dominant. However, their signals can be early, so we would not declare that the intermediate-term bullish trend has resumed, unless $SPX closed above resistance at 1630."

With half the trading day gone, the early gains are fading, but the S&P500 is holding above 1630 at around 1638.

I remain short the AUD/USD and have not yet re-entered the stock market.