Sat 18 Apr 2009
From the people who brought you FAZ and FAS, Direxion, has launched triple T-bond ETF’s. It’s currently very thinly traded, but so were FAZ/FAS when they first started. I think these will become increasing more liquid, and will provide equity traders with an opportunity to trade bonds for volatility swings on the release of economic numbers and Fed meetings. Definitely keep an eye on these.
The SPY has formed a 3 push wedge, with a negative MACD divergence, and could be presenting trader’s with a good risk/reward entry for a short. 88 was also a level where the SPY failed twice earlier this year.
A little humor. I’ve seen some some pretty good stuff from Dilbert lately. Here’s a few more.
Checking in on the 4 bad bear markets. This is the second worst bear market of the past 100 years.
An interesting article from the Journal talks about the possible effects leveraged ETF’s may have on the final 30 minutes of the trading day. Definitely worth a read.
According to Bespoke, stocks with the highest short interest have been the leaders in this rally. Could this just be a short covering rally? We’re not sure yet. But they also note that market bottoms have started in similar fashion in the past.
There’s a lot of skepticism on the bank earnings from the last week. If one digs into Citi’s numbers, they see that the company actually lost money. Goldman did some accounting acrobatics in order to report stellar numbers. There’s also been some questioning on Wells Fargo’s loss reserves. All in all, banks beat lowered estimates, but after Goldman’s earnings this past week, things felt like they changed, even if it was just a little.
China has made yet another move towards moving away from the US dollar. This is something to keep an eye on in the future, as China is the biggest holder of US currency, and a change in their policy would have major effects on US monetary policy. This will take some time to play out, but it would be prudent to not ignore this.
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