Category Archives: Equities

Tweet of Yesterday: What a call

Posted on April 17, 2013 by

Enis Taner from Risk Reversal tweeted this late yesterday.    Note the S&P500 closed at 1574.30.   He really nailed it. For the bulls to breathe a sigh of relief, SPX needs to recapture 1575. If it does not do so … Continue reading →

Posted in Equities | Tagged , , , | 2 Comments

Emerging Markets: The Catch-Up Trade?

Posted on April 10, 2013 by

Emerging markets are finally starting to find a bid.  The Brazilian Bovespa, after a nice reversal on Friday, came into the week down almost 10 percent with most other emerging market equity indices lagging the S&P500 in a big way.  … Continue reading →

Posted in BRICs, Emerging Markets, Equities, Mexico | Tagged , , , , , | 3 Comments

Trannies and Russell Break 50-day SMA

Posted on April 3, 2013 by

The recent weakness in the Transports and the Russell were confirmed by today’s sell-off in the S&P500.  Let’s see if they can reclaim 50-day and if all the buyers waiting for the sell-off step in here.  Note also the weakness … Continue reading →

Posted in Equities, Technical Analysis | Tagged , , | 1 Comment

S&P Gets It Done

Posted on March 28, 2013 by

The S&P500 finishes Q1 at a new all-time closing high of 1569.19 taking out the 1565.13 October 2007 high.    Impressive getting it done without Apple and Google with today’s slam dunk (see video)  led, again,  by utilities and healthcare. Next … Continue reading →

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Staples Outperformance Signalling a Correction?

Posted on March 27, 2013 by

Let’s revisit the S&P500 (SPY)  and Consumer Disretionary: Staples ratio (XLY/XLP). Last month we flagged the outperformance of consumer staple stocks relative to consumer discretionary was signaling the pullback albeit a small one — just over 3 percent around the … Continue reading →

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Cyprus Deal Unleashes Bidzilla

Posted on March 24, 2013 by

The BIDzilla for U.S. equities is relentless.  Though Europe is far from out of the woods (see last week’s PMIs) and it’s still unclear when the banks in Cyprus will reopen tonight’s bailout removes the uncertainty of a Cyprus eurozone … Continue reading →

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S&P500 Testing Key Support

Posted on March 21, 2013 by

Hard to to discern the cause of the increase in chop in U.S. equities.  Cyprus?  Overbought? Earnings worry?  Strong dollar’s impact on earnings (see Oracle’s release)? Here’s what we said on March 4th: No doubt the stronger dollar will be … Continue reading →

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WTF Were They Thinking?

Posted on March 18, 2013 by

That’s our System 1 (fast) thinking  kicking in after hearing the news of the Cyprus bail-in of depositors.  Our fast thinking really fears contagion and makes us want to vendere la casa!   We often get into trouble trading with … Continue reading →

Posted in ECB, Equities, Euro, Germany, Sovereign Debt, Sovereign Risk | Tagged , , | 6 Comments

Stocks Better Than Alternatives – Economist

Posted on March 7, 2013 by

The Economist sums the melt up best: It is tempting to attribute the strength of the Dow to optimism about the American economy. Tempting, but wrong. Studies have shown almost no correlation between GDP growth and equity returns. Indeed, the … Continue reading →

Posted in Economics, Equities | Tagged , , , | 1 Comment

No Joy In Shortsville As Noise Traders Find No Sellers

Posted on March 4, 2013 by

In 1990 Brad De Long, Andrei Scheifer, Larry Summers, and Robert Waldmann published, Noise Trader Risk in Financial Markets, in the Journal of Political Economy.   The piece made the distinction between short-term traders with long-term investors and concluded that their … Continue reading →

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