Sunday, November 30, 2014

Some weekend reading

Well, here's three newsbits for this weekend:

New Deal Demoncrat - weekly indicators. Corporate bonds are weakening, but we've been seeing that for a few months - it's what drives the one-week ten-percent pukes in the market. Other than that, no, everything is fine.

Brett Steenbarger - surprising pockets of weakness in US markets. Quote:
Recent posts have stressed that it takes more than a pullback of buying interest to sink a rising market: we need to see outright evidence of weakness. Not only among energy stocks, but also the smaller caps, we're starting to see such weakness. I couldn't help but notice on Friday that 128 stocks in the NYSE universe closed above their upper Bollinger Bands, an above average reading. A total of 300 stocks, however, closed below their lower bands.

That is not supposed to happen in markets sitting near their highs.
So... another 10% rollover imminent? High yield is already rolling over, so maybe we get another ten percent puke next week? I'd really love the opportunity to short $VIX at 30 again, can we do that? Or maybe buy Union Pacific for 10% off again, can we do that? And to think all this volatility is driven by a little drop in the price of oil upsetting all the tradebots. Exciting times, exciting opportunities!

Ritholtz - bad habits of unprofitable traders. You probably have some.

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