Hooray, an up day! Here are some things to consider.
FINALLY, the BXM/SPX spread is heading lower, and that is a sign of more aggressive risk taking which is good for equities. Due to the overbought condition, a gap open tomorrow in the SPX should be faded if this chart can’t get below the 10sma.
The equity/bond spread has stabilized over the last month, but I suspect we’re in for a breakout to the upper Bollinger.
Hrmmm, this is tricky. The Yen might be worth getting back into, but that doesn’t jive with my reflation scenario. USD/YEN is a must watch because of the chart below.
Japan has broken its massive downtrend, and looks capable of hitting the upper Bollinger. If the Japanese market is rising with a strengthening Yen, I think I’ll go invest in Japan to take advantage of the equity and forex trends.
Jibbidy jabbber jab, I don’t want to repeat myself tonight. I could talk this shit all day, but it’s pointless when I have better things to write. We’re still going up, but don’t bet the farm, because the decreasing volatility is still high and can make you loose your shit faster than a hooker with rubber sheets.