As founder and editor of Diamond Slice I’m proud to announce that The Weekly Spectrum is going to be more “focused”. It’s obvious that you can get a weekly outlook anywhere on the net, so the one you’ll find here is about to become a bit, well, edgy. There’s enough “fair and balanced” out there to kill us all of boredom, I believe that we at DS can give you something much better, something much smarter, and something you can actually profit from. So without any further ado, I give you “The Weekly Spectrum” 2.0…

In the week ahead the U.S. equity market, broadly represented by the S&P 500 index, will be looking for direction as the level reaches its 200 day moving average (MA), which had served as firm support before dropping below that level on May 22, 2010 for the first time since mid July 2009. By our analysis, markets are now undergoing a sentiment shift, in turn morphing the 200 day MA into a resistance; twice tested but not yet broken since crossing below on May 22.

Many of you may be asking yourself, “what’s changed since last week with the EU bailout?” One would think there would surely be some sort of news or development concerning the exact structure of this plan, rumored to be a sovereign debt backstop of $1 trillion USD. Is there surely some plan moving forward?

***PLEASE FEEL FREE TO CHECK OUT THE BRAND NEW GLOBAL ECONOMIC CALENDAR BY CLICKING “ECONOMIC CALENDAR” IN THE NAV BAR***

If you ducked out of the office for a three day weekend and missed the news regarding Goldman Sachs and Greece on Friday, you may be rolling up your sleeves to a few surprises that will cast a dark shadow on the April 19 week’s market action.

Mainly, Goldman Sachs (GS) has been charged with fraud by the Securities and Exchange Commission (SEC), linked to a Credit Default Swap (CDS) mechanism known as “Abacus”.

The following is a Soap Box rant in response to the question below from a good friend of mine. I felt compelled to share it with readers… Question: "So a lot of chatter here about the housing recovery and this being a good time to buy companies such as whirlpool and sherwin williams. (Basically stuff
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The Weekly Spectrum The 2009 Thanksgiving holiday week will be brief, but crucial economic data to be released between Monday and Wednesday will leave marks on investors faced with the pivotal punches of where to put their money. With a spotlight on housing, economic data for the November 23 week will be highlighted by Existing Home Sales,
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Inevitably even the grizzlies have been watching economic indicators gaging the housing market “recovery”, as talk of a 2009 rebound in the United States has now been confirmed by 3.5% growth in the third quarter. Existing home sales bottoming, construction spending pulsing and extreme incentives for new buyers have sweetened the potential for a repeat of the 2004 housing recovery we all loved so well. Yet there remains the issue of magnitude, regarding a potential housing recovery, which may contrast that of 2004 a great deal, and could kill the lasting effects of a bottomed housing market on the broader economy. We will attempt to review and assess the American economy by result of the Housing Market from a historical and quantitative standpoint.