11, 2002; Fundamental Price Charts Encourage Stock Buys
inflation has been above its two hundred day moving average consistently for
almost a month and last week the average turned up as well (see Chart).
pierced the 200-day average on March 1, but the 200-day average is not yet
rising (see Chart).
gas pierced its 200-day average on February 26 (see Chart). The
200-day trend has flattened and could turn up momentarily.
Earlier we had suggested that the daily price might pierce the 200-day
average in May. The sooner
happening partly reflects a better definition of the averaging period from
working days to calendar days. The
fact that such a technicality might affect the picture reminds us of the
subjective nature of price judgments.
is good news for refiners also. The
refining margin on New York Harbor gasoline and fuel oil has pierced the 200-day
average (see Chart). Though it is
hard to detect visually, the 200-day average has also turned up.
The spring months in advance of the summer gasoline season have often
been good for refining stocks like recommended MRO.