Corporate bonds have been on a tear since April; however, the paper of financial firms has outperformed all other categories by a significant margin. This is odd and perhaps suggests the market is either not correctly pricing this paper, or something is artificially preserving their value. During April and May, investment-grade subordinated financial bonds returned [...]
There’s a lot of play here right now, and this group has consistently been on the top of my performance list. They’re a wild bunch and you have to try and trade against the herd, otherwise there’s no liquidity and you’ll get picked off like an ugly zit. The theme is really revving up and [...]
The SPX bottomed 3/6/09 at 666, and has never looked back, as the index galloped into the longest buying stampede in decades. Major indices are in the process of forming an intermediate “top” with insiders selling like mad. At the same time, many of the leading groups are breaking below their relative strength support levels. [...]
Great piece by Colbert discussing last hour sell programs triggered by algorithms:
Game Plan – Market following “yields”. Watch 5 and 10y yields. Technician’s waiting for “right shoulder” will be left behind. Watch for start of retracement to test long-term support and confirm recent bottoms, but maintain bullish view until reversals are in. Campaign – Most “Doji’s” negated. Dow INDU target 8940-9000. 8350 support. DJINET trg= 90. [...]
