Greg Weldon – Macro-US: Miracles

Posted by Greg Weldon via Weldon Financial

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 From the iconic seventies rock band Jefferson Starship … 

“If only you believed in miracles … 

… like I believe … 

… we’d get by.” 

The US stock market is currently singing this song. 

Indeed, we work our way backwards in today’s Money Monitor, starting with the markets, rather than the macro-data, by observing the chart on display below in which we plot the US S+P 500 stock index. 

We focus on today’s upside breakout attempt, an event we anticipated as per yesterday’s Weldon LIVE. The US stock market is banking on a miracle … 

… another monetary miracle, to be delivered by the Fed, via QEIII

Evidence the daily chart on display below revealing that the benchmark US stock index (futures contract) is making a run at key overhead resistance defined by the July 5th intraday high of 1375.00 … in synch with support generated by a increasingly bullish moving average dynamic, and in line with the completed downside Fibonacci retracement. 

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Reviewing the chart of the S+P 500 exhibited at the bottom of the previous page, we spotlight the fact that the July 5th high of 1375 was established within the context of a key outside-downside reversal day. 

Indeed, we observe that, currently, the S+P 500 is well below today’s intraday high, which did in fact ‘breach’ the July 5th high. 

Food for thought … 

… particularly when we can dissect the deluge of macro-economic data emanating from the US in the last week, and clearly conclude that DEFLATION is becoming increasingly dominant, as the primary macro-force. 

Hence, it becomes an easy conclusion … the markets are pinning their hopes squarely on the shoulders of Ben Boom-Boom Bernanke. 

The US stock market is riding on the wings of hope … 

… and the rally could fly, for a while. 

But at the end of the day … the US stock market is DEPENDENT on yet another monetary miracle from the Federal Reserve. 

….read the entire 12 page report covering a breath of fascinating issues HERE.

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Be sure to listen to Greg’s latest on Money Talks with Michael Campbell tomorrow at 9am PST. You can listen live or in podcast at

Weldon Financial produces independent research for the sophisticated investor and/or trader and offers investment management solutions that capitalize on global market trends. Greg Weldon is the founder and sole producer of all the research and operates his money management services as a registered Commodity Trading Advisor. 

Weldon’s Money Monitor offers a very independent, objective view of the global markets by applying a top down market analysis and a bottom up technical analysis. Greg also publishes The Metal Monitor and The ETF Playbook offering specific focus on the precious metals markets (prices of Gold, Silver, etc.) and the world of Exchange Traded Funds, respectively. He has a creative and captivating writing style and his loyal readers have claimed that the ‘research pays for itself over time’. 

The Global Macro-Discretionary Program manages money for individuals, joint, trust, corporate and partnership accounts. Mr. Weldon approaches his investment selections from a top-down macro-perspective and then applies his quantitative discipline from the bottom-up to execute his methodology, seeking to produce an absolute return while sharply focusing on risk management. This program invests in a diverse range of futures contracts across the commodity, currency, global stock index, and global fixed-income sectors. Weldon’s Commodity Long-Short Program takes a more quantitative approach, using our proprietary Momentum Trading Indicators, and invests strictly in the strongest ‘bullish’ and ‘bearish’ commodities. 

….read the entire 12 page report covering a breath of fascinating issues HERE

Weldon’s research publications are explained in more detail in the Research section above including an invitation to sign up for a FREE TRIAL for thirty days.