Not on the Same Page

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Just about the only time I see a large number of magazines at once is when I’m going through an airport, such as last night. I often find the strangest part of the magazine section to be the women’s magazines, since they seem a peculiar combination of righteous indignation and breast-display. These two magazines were next to one another, and the juxtaposition of message was particularly striking:

0917-aging

It seems that Allure featured a self-congratulatory “call to the industry” to stop obsessing over youth. Don’t hold your breath, people. Nothing’s going to change.

Finally Breaking 2500

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After a memorably boring four day range consolidation Tuesday through Friday last week, SPX finally broke up and tagged 2500 at the close on Friday. This should follow through to the upside, short term at least, and I have some targets to watch, and a warning that this move over 2500 may well not last the week.

On SPX the obvious trendline target is rising wedge resistance, currently in the 2514 area, and a strong match with rising wedge resistance on the ES chart. On the daily chart (not shown below), there is a possible RSI 5 / NYMO sell signal brewing, but the negative divergence is slight and might well be lost on a green close today or tomorrow. SPX 60min chart:

170917 SPX 60min

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Equities in Real Money

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Using good old SlopeCharts, I thought I’d do a little experiment. As you know, stocks are at lifetime highs, but in nominal terms. I wondered what things look like in terms of “real” money (as measured by GLD), so I entered the symbol (SPY/GLD) and got this result:

slopechart_(SPY-GLD)

What jumped out me is that, in these terms, we are actually lower than we were in the pre-financial crisis peak! In addition, the ultimate low for the market wasn’t the famous March 2009 bottom, but instead took place a couple of years later (which makes sense, if you look at bank and financial stocks, which plunged until then). Food for thought.