Not much to say about the market. It is in la-la land for now – The Fed, earnings, oil, historical highs, the global outlook, and opposing chart patterns all playing in the head at the same time makes for the la-la. A white room with white soft cushions everywhere and all will be fine. Shhhhhh …
A couple of months ago, more than few chartists were forecasting the end of the second longest bull run in history – the dreaded Death Cross had appeared. Yesterday, the Golden Cross popped to the top of the charts, which means the bull run still has legs?
- A “Golden Cross” is formed when the 50-day simple moving average, crosses above the 200-day moving average.
Nike (NKE) might be experiencing its own version of the Death Cross, but, like the market, the sentiment that produces such patterns, might be, well, not right? A look at Nike’s one- and two-year chart suggests the freaking out could be, well, not right? Nike appears more golden than dead.
- Nike is taking on a more vulnerable look. For patient bulls, the result could be much lower-risk entry levels in the coming weeks.
Maybe I have a moralist tendency, or maybe I just think a fair playing field is good for all, or, maybe, I just like to see bad people (and companies) get their due justice.
- Mitsubishi Motors said it had used fuel economy testing methods that were not compliant with Japanese regulations for 25 years.
Mitsubishi and Volkswagen remind me of WWII – bad leadership leads to crushing defeat.