The Golden Sunrise

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Golden Sunrise is the Golden Surveyor’s broad-based market and world view. 

 Written daily 4am-7am by markets information specialist GS John! 

 

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Today’s Golden Sunrise

Friday, June 11, 2010

Hours of daily research consolidated for you

Moving Average Mayhem

Don’t we all love nice, clean, clearly defined, easily visible levels. The classic 50 day and 200 moving day averages (thought moving day average was just an insider pronunciation of the phrase but it is actually more precise in addition to being JoeCool hip-which is nice) serving as support or resistance and bouncing or failing there.

 Adding the 9 and 20 averages gives us a short term perspective as well and many classic technicians are beginning to put more emphasis on layered averages as stepping stones to the next target zone. I am going to post a few charts this morning that might have something going for the underlying, off the main thoroughfare radar screen.

The BKX: Around Jan support and did not get to Feb lows, broke back above the 200 and the 9 mda yesterday…worth keeping an eye on. Regional Banking Index-

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I ran quite a few scans last night and these posted (among others) caught my eye and have gone into my mental note file.

arket soared yesterday…gapped up and finished with a solid last hour but on very, very light volume. The market absorbed or ignored a number of data fragments:

  • Romania, Bulgaria are coming up into “whoa baby, there might be some trouble here” credit consciousness
  • Home repossession hit a record 93,777 in May, up 1% vs. April, an increase of 44% month year over year
  • Jobless claims were 456,000 (worse than expected) but ongoing claims declined as either people found jobs or the benefits period expired and they were deleted from the count
  • Trade deficit at $40.3 Billion hit a 16 month high, with declines in both imports and exports
  • Each would seem to be troubling but, as has been the pattern, bad news and good news seem to have no correlation with the market action on the day it becomes known. From Don Worden at Telecharts comes the fact that since the April high, the market has had 32 trading days and almost 50% of those sessions have resulted in greater than 200 point moves-some up, some down. 22 of 32  have had triple-digit moves.

Very light volume but of the 50 stock up listing in IBD’s timesaver matrix, all had cumulative ratings of 98 or 99. The buying was focused in the better rating names-at least, for yesterday-but volume was not that great in many of these names as well.

 The gold index remained in the number 1 slot of the 23 indexes, where it has resided for the past several weeks. Among the 197 groups, however, mining-gold, silver, gems, it slid 10 positions to number 55. This group was underlined, meaning it fell into the bottom 10 performers, but was up 1.2% on the day to demonstrate how strong the day was. Market breadth was overwhelmingly positive but that offsets earlier days where the exact opposite occurred.

 GLD: Long-term strong, short term  questions.

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 The GDX: Larger gold miners-short-term positive…interesting

611gdx.png 

 

Expecting the unexpected has become expected so (I’m trying to get Donald “known knowns, unknown unknowns) to help me with the rest of the sentence but you get the idea.

A not for the faint of heart market.

 

JohnR

Goldensurveyor.com