Saturday, March 19, 2011

10 March 2011 When Did That Happen?


10 March 2011 When Did That Happen?

It is Saturday so you know what that means. The new Barron’s is here. I usually wait in the driveway for my weekly does of capitalistic propaganda. Today it was different. I had a higher calling. My son Jack, had a weight lifting camp for which he was signing up. Now last night we had him at Basketball practice. This morning, while I proudly watched him work his way through jerk presses and bench presses and eventually out to the field and doing football training, it hit me. My son is a Jock. OMG. When did that happen?

We did eventually make it to the house. (I asked him not to sweat on my leather seats.) And there was my Barron’s magazine. We have only skimmed it as we watched the news a bit to find out France was the first to invade Libya. Did I just use “invade”, “France”, and “first” in the same sentence? It felt kinda weird watching the news and not seeing The US leading an assault. As a world leader, it seemed a bit strange.

If the markets were open, we feel it would be very volatile and the price of oil would be shooting up. We are going to watch this close and try and make some observations you can make money on this week. We will try and get that published by Sunday evening.

Two things we do want to share with you today. First is an update on the CRONASTICS CHART.

This is our homegrown chart using the IBD accumulation/distribution ratings for the DOW and the Nasdaq and how many companies on the NYSE are above their 200 day average. We boil the numbers and ratings down and created this chart. What you know is the continued fall for the week, which should be expected in light of the week we had. However, note the very subtle shift in the last two data points. The degree of the shift is beginning to taper just a bit. Visually and mathematically the drop seems to have slowed. We played with the numbers and it is very difficult to hot zero. We are thinking that when the chart shifts to an upward direction, we should be seeing more accumulations days than distribution days. We will wait and see.

The other item we felt compelled to share with you is a great article in Barron’s. If you have an interest or are just curious about foreign currency, Randall W. Forsyth does an amazing job of explaining the mechanics and impact of the G-7 interventions to stabilize the Japanese Yen. He does so in a way that is easy to understand, informative about global money flow, and how these things impact sovereign capital markets. This is a keeper, not just for this crisis, but to understand how and why central banks buy and sell other countries debt and keep or sell other countries currency. This is worth the price of admission this week.

We will wrap up our review of Barron’s and see where the oil plays might be before Monday morning.

Salve Lucrum.


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