Charts of Interest

Here's some charts of interest heading into a new and shortened week.  First the S&P 500 exchange traded fund  (SPY).  The S&P 500 has broken out of resistance and has achieved multi-year new highs.  The chart is oversold on a shorter term basis but there is still no reason to be shorting this market based on an intermediate term basis from the chart below.

The next chart of interest is the Euro.  The Euro has had a positive correlation to the US stock market.  In other words, when the Euro is appreciating against the dollar US stocks in general tend to outperform.  The chart really has not made up its mind which direction it will proceed, but it is well of the lows. Below is a chart of the Euro exchange traded fund FXE.

CELG is a large holding in the portfolios.  The stock is closing in on an all time high price of around 77.50.  Once it breaks that level, it will be trading in new high territory.  Below is a monthly chart of CELG.

Bottom Line:  The stock market has been resilient shrugging off average economic data and European debt issues.  The trend is heading higher as the market has broken out of several year resistance points.  There is absolutely no reason to be shorting this market based on the charts above, and I expect higher prices in the future.

Disclosure:  Long CELG

 

Chart Update

I still like the uptrend of the overall market here.  The S&P 500 is close to a breakout higher (above the resistance zone) that I believe will take it to the 140 level in the coming weeks. As long as the overall market is trending higher we can still hold onto stocks for the near to intermediate term time frame.  Below is a chart of the S&P 500 fund (SPY).

Bottom Line:  There is still the issue of a Greece default down the road that may have an effect on Portugal and other countries within the EU.  But for now, markets are willing to put those worries aside and focus on corporate earnings and a potential economic recovery in the US.  We remain about 90% invested.  Thank you for stopping by.