STOCKS: In my opinion, the stock market gave a good account of itself today. In addition to bad news from the Greek election, The Shanghai Composite has dropped 30% in a very short time. Our markets don’t correlate well with those of Asia, but a drop like this is hard to ignore.

DOW                                                    – 47 on 850 net declines

NASDAQ COMP                                   – 17 on 500 net declines

SHORT TERM TREND                          Bullish  

INTERMEDIATE TERM TREND             Bullish

Help should soon be on the way. Check out the chart below.

GOLD:  Gold gained $5. With all the turmoil in the World, one would think the yellow metal would be doing better.   

NEXT DAY: Tuesday should be higher.

CHART:  Most market indices held their lows of late June, both intraday and on a closing basis. This is a positive, at least so far. We would not like to see those lows broken.

BOTTOM LINE:  (Trading)

Our intermediate term system is on a buy.

  System 7   We are long the SSO from 65.70. If there are more declines than advances at 3:45 EST, sell at the close.                     

  System 8   We are in cash. Stay there.                    

GOLD  We are in cash. Stay there.     

News and fundamentals:  This is a very light week for news. On Monday, the ISM services index came in at 56.0, less than the expected 56.3. On Tuesday we get job openings (JOLTS) and the trade deficit.

Interesting Stuff  Economics is the only profession that I know of in which an individual can be constantly wrong and still be considered an expert.   

TORONTO EXCHAN GE:   Toronto was down up 89.   

S&P/TSX VENTURE COMP: The TSX was lower by 7.       

BONDS:  Bonds surged in a flight to safety.                                                 

THE REST:  The dollar moved up mildly. Silver was higher. They took crude oil out and shot it. Down over 7%.           

We’re on a buy for bonds as of June 11.                      

We’re on a buy for the dollar and a sell for the euro as of June 23.                       

We’re on a sell for gold as of  July 2.                         

We’re on a sell for silver as of June 23.                        

We’re on a sell for crude oil as of June 4.                             

We’re on a sell for the Toronto Stock Exchange as of May 6.    

We’re on a sell for the S&P\TSX Venture Fund as of October 30.    

We are on a long term buy signal for the markets of the U.S., Canada, Britain, Germany and France. 

 INDICATOR PARAMETERS

     Monetary conditions (+2 means the Fed is actively dropping rates; +1 means a bias toward easing. 0 means neutral, -1 means a bias toward tightening, -2 means actively raising rates). RSI (30 or below is oversold, 80 or above is overbought). McClellan Oscillator ( minus 100 is oversold. Plus 100 is overbought). Composite Gauge (5 or below is negative, 13 or above is positive). Composite Gauge five day m.a. (8.0 or below is overbought. 13.0 or above is oversold). CBOE Put Call Ratio ( .80 or below is a negative. 1.00 or above is a positive). Volatility Index, VIX (low teens bearish, high twenties bullish), VIX % single day change. + 5 or greater bullish. -5 or less, bearish. VIX % change 5 day m.a. +3.0 or above bullish, -3.0 or below, bearish. Advances minus declines three day m.a.( +500 is bearish. – 500 is bullish). Supply Demand 5 day m.a. (.45 or below is a positive. .80 or above is a negative). Trading Index (TRIN) 1.40 or above bullish. No level for bearish.

      No guarantees are made. Traders can and do lose money. The publisher may take positions in recommended securities.