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Monday, May 2, 2016

Daily update 5/2 GLUT: The U.S. Economy and the American Worker in the Age of Oversupply

As expected today undid Friday's sell off.

SPX closed above the 20 SMA, but still below the 6 SMA.  The breadth was +60%  which is a bit light for the magnitude of the move up.  New highs increased to 146.  Volume decreased considerably.  I suspect this will be a bounce to a lower high.  Today did not seem to have much energy.  That could be because we were not oversold enough to really bring in the buyers.

The futures bounced back to the 20 SMA.  This is a place they could roll over from because SPX turned the short term trend down on Friday.  However, the R2000 index is still sideways and that could help the bulls push this bounce a bit further.  Market internals are not bearish yet either.

The green count picked up a bit, but is still below 50.  This is still neutral.  A very strong or very weak day could send the corresponding count over 50.  Another weak up day could still leave the green count below 50.

The market retraced the end of month down move.  What happens now?  If the market meant what it said on Friday when it turned SPX's short term trend down then we should head south again tomorrow.  If the bulls show up instead I will be watching for a lower high to develop.  I just don't believe we have a good setup for a launch to a new rally high. 

This is a very interesting article. A bit on the long side, but worth the time.  GLUT: The U.S. Economy and the American Worker in the Age of Oversupply

Rant on.

I have not had a good rant in a while.  Some times humans really just totally amaze me.  People have been using public restrooms for longer then I have been alive and yet there seems to be some confusion over which one should be used.  The flap over N.C.'s recent bathroom law is just freaking amazing.  I think I have a simple solution.  In the early days of trying to form representative forms of government people learned that you can't please all the people all the time.   In case you never heard of it the solution that people came up with was called majority rules.  In the modern world the internet and social media has created an environment where small groups of people are changing things for the majority.  In this one case lets just stop this foolishness.  Here are three simple rules for using public restrooms that do not require a birth certificate.

1. If you currently have only a penis use the mens room.
2. If you currently have only a vagina use the ladies room.
3. If you currently have both (intersex) then use the room you are most comfortable.

This solves the problem for over 95% of the population.  Anybody unhappy will just have to live with it.  Sorry.  There is no solution that will make 100% of the population happy.  The majority rules.  Can we now get back to more important problems like creating good paying jobs for people.

Rant off.


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.