Charting Stocks

Chart of the Trade Weighted US dollar from 1973-2009.

When we wrote “Inflating a Bull Market,” we mentioned the inverse relationship between the US dollar and stock prices. In March, the US dollar peaked from overbought levels and began to decline. At the same time stocks bottomed from oversold levels and began to move up. The reason is simple – Stocks are priced [...]

It must be nice to be a huge conglomerate like General Electric. After all, you can drum up support for a meaningless war through one subsidiary (NBC/MSNBC) and then reap the financial benefits of that war through another. You can even invest in a company which has yet to turn a profit as your media [...]

Morgan Stanley CEO announced that he is stepping down as CEO and will be replaced by James P Gorman.  Mack, who spent four years as the head of the prestigious investment bank, will remain with the firm as its Chairman.
James Gorman joined Morgan Stanley in early 2006 as the President and COO of the firms [...]

Was it the iPhone app? Traders have been baffled by the unusually high buying interest in VoIP phone call provider Vonage Holdings Corp (NYSE: VG). The stock has risen 500% in 2 weeks with little or no news to warrant such a move. Perhaps the most amazing thing was the volume: Nearly 40 million shares [...]

Citigroup has suspended mortgage applications at a unit which produced nearly $58 billion (half of the their mortgage business)  after the bank discovered that  income verifications and property appraisals were ‘missing.’ Other missing information includes employment verifications, phone numbers, credit reports and rent verification.
In a letter to clients, Citigroup stated that the division has stopped [...]

After nearly 5 years of  depression, the housing market will likely bottom in 2010. Many of the major home builder stocks have finally broken above 4 year downtrends, while others are showing clear signs of a bottom (pinch me).
Why do we care about stocks? It’s important to understand one of the most fundamental principles of [...]

Last week, we mentioned that technical indicators began to turn negative. Technical damage continued today as the Dow Jones Industrial Average, Dow Jones Transportation Average, and  S&P 500 closed below their pivotal 50 and 200 day moving averages (first time since March), with all 3 averages registering an RSI sell signal.  NASDAQ bucks the trend [...]

Financial stocks are beginning to show signs of weakness with Citigroup (NYSE: C) looking the most vulnerable.
Citigroup stock (chart below) was the first in this group to break their previous uptrend line. With RSI under 50 and the MACD indicator turning negative, it appears that Citi may be under some pressure in the coming weeks.

We’ve written about the relationship between US equities and the US dollar. Stocks bottomed in March and began to move up as the US Dollar topped during the same time and began to move down. Todays market selloff came as an oversold dollar (short term) found buyers.
If the dollar continues this advance, US equities should [...]