Investing Links of Interest – July 3, 2013
Lawrence C. McMillan, of McMillan Analysis Corp., utilizes technical analysis to divine the future of the market. He doesn’t see the bull market continuing until the S&P 500 pushes through the 1,630 level and explains why.
Let’s start with the chart of S&P 500 itself. The decline formed a V-bottom last Tuesday, at 1,560, so that is support. The previous breakdown had gapped down from 1,630, and the declining 20-day moving average of SPX is at 1,620, so there is resistance in the 1,620-1,630 area. In an oversold rally, it is quite common for the rally to carry past the 20-day moving average.
Ambrose Evans-Pritchard at The Telegraph writes that Bernanke’s Fed may be putting on the brakes prematurely as inflation shows no signs of heating up.
It has violated its own counter-deflation strategy, tightening monetary policy even though core PCE inflation has fallen to the lowest levels in living memory and below levels deemed dangerous enough in the past to warrant a blast of emergency stimulus. It is doing so even though the revival of bank lending has faded.
Source: The Telegraph
Tekoa Da Silva of the Bull Market Thinking blog interviewed Jim Rogers who doesn’t see anything good coming from the massive money printing going on.
When asked if we’re seeing forced liquidation leading the smash down in gold this morning, Jim said, “We certainly are. There are a lot of leveraged players who are now being forced to sell. Usually when you have this kind of forced liquidation, you’re getting closer to a bottom, maybe not the final bottom, but certainly close to a bottom. I even bought a little bit [today].”
Source: Bull Market Thinking
IndexUniverse interviews financial author William Bernstein regarding the recent move in interest rates.
Bernstein: Never underestimate the power of financial amnesia. That is a charitable way of putting it, or some people are historically illiterate. Bond markets do crash from time to time.
Larry Kudlow interviewed Ken Heebner, of Capital Growth Management, and George Gilder. Heebner looks for accelerating economic growth which will last for years and is bullish on homebuilding stocks and Ford Motor (see video below).
Mebane Faber, Chief Investment Officer of Cambria Investment Management, finds U. S. stocks a little expensive, but sees the rest of the world fairly cheap (see video below).