Central Bank Experiments From The Lab
 
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The ECB is weighing on buying more European corporate bonds which is a new experiment for them.

They’re doing this since there isn’t enough government debt to meet their needs. This marks a new twist on QE. They’ll commence this action in June as member banks will also be buying corporate debt. And so the scheme continues.

Economic data Thursday was weak overall Thursday. The Philly Fed Mfg Survey fell sharply to -1.6 vs prior 12.4; Chicago Fed National Activity Index fell to -.44 vs prior -0.38; and, FHFA House Price Index was lower to 0.4% vs prior 0.5%. Leading Indicators were higher to 0.2% vs prior revisions from -0.1% to 0.1%. Then there’s Jobless Claims which fell to a 42-year low at 247K vs prior 267K. This number brought some cheer but further analysis might suggest this decline meant workers no longer eligible for unemployment benefits. They’d be driven to direct government benefits and/or part-time jobs. It’s well-known for many government relief may be better than part-time jobs—just sayin’.

Stocks fell led lower by telecoms, utilities and overseas markets. Oil was weaker as were most commodities while the dollar was flat. Of perhaps greater interest is Gallup’s 19-year trend (shown below) as the number of adults invested in the stock market has fallen sharply.

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You might attribute this decline as individuals have not reinvested from losses and withdrawals attributed to the recession.  They may never come back.

Wednesday I posted an excellent article from Alt-Market.com which posited things will end badly and why. I encourage followers to read it. 

Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day (green) may mean leveraged inverse or leveraged short (red).

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Volume once again was quite low and breadth per the WSJ was negative as was Money Flow.
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12-17-2015 9-04-44 PM Chart of the Day
 
 
 
4-21-2016 3-04-33 PM IBB


Charts of the Day
  • SPY 5 MINUTE

    SPY 5 MINUTE


  • SPX DAILY

    SPX DAILY

  • SPX WEEKLY

    SPX WEEKLY

  • INDU DAILY

    INDU DAILY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • XLE WEEKLY

    XLE WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • KRE WEEKLY

    KRE WEEKLY

  • XLI WEEKLY

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  • XLV WEEKLY

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    XLU WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXE WEEKLY

    FXE WEEKLY

  • FXY WEEKLY

    FXY WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

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    JJC WEEKLY

  • USO MONTHLY

    USO MONTHLY

  • DBC MONTHLY

    DBC MONTHLY

  • EFA WEEKLY

    EFA WEEKLY

  • IEV WEEKLY

    IEV WEEKLY

  • EEM WEEKLY

    EEM WEEKLY

  • NYMO DAILY

    NYMO DAILY
    The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

  • NYSI DAILY

    NYSI DAILY
    The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.

  • VIX WEEKLY


    The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation has changed due to a variety of new factors including HFTs, new VIX linked ETPs and a multitude of new products to leverage trading and change or obscure prior VIX relevance.




















As indicated the $NYSI (above) is extremely overbought plus two heavy weights, Google & Microsoft laid eggs after the close Thursday.

Let’s see how they do Friday.

Let’s see what happens.
VIX WEEKLY

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