A few things to watch in the coming week. Despite today’s pullback, my primary indicator remains bullish, so I’m buying the dip. The SPX buy write is lagging the underlying index, so the bulls are looking good for now. The spread between equities and bonds looks ready for a breakout, potentially to the upper Bollinger….
A few themes to keep an eye on during the week. The housing sector remains in an uptrend, but like so many indexes, a break below the weekly low is likely to bring sellers. The regional banking index hasn’t made a lower low during the last round of selling, perhaps this is the first sign…
LQD has been good to me, so why not move down the quality ladder for higher yield? I’m kicking myself for being too lazy to post this chart last night. The large volume in high yield corporate debt suggests that risk sentiments are changing. If you like high yield, here is a ton of rising…
My indicator was down today, but not broken. One sector is in critical danger. The financial sector made a new O today, indicating an increasingly volatile and bearish environment. The buywrite/index ratio is rising (bearish), but it approaching a falling 10sma (bullish). This breakout in the HUI/GOLD is bullish for gold stocks, so I’m buying…
The Buywrite Index has been crushing Buy ‘N’ Hold strategies for months. Will the BXM:SPX ratio find resistance @ the 10sma? Gold miners haven’t lost much ground to gold, which I interpret as a bullish signal. Long LSC and short commodities is one of the best strategies I can see. Up almost 20% since this…
A glance at TLT & JNK reveal the market is running to the “safety” of Treasuries. Be patriotic, short junk bonds, buy Treasury debt, and pay capital gains. As a incredibly paranoid and admittedly stoned lover of arcane conspiracies, I’m beginning to interpret the rise in Treasuries as an increase in the premium to hedge…