Morning Thoughts May 21

US markets continued to trend lower on Friday as investors took risks off the table ahead of the weekend. There were no specific news driving the market. Of the 24 industry groups in the S&P500, only Telecom Services was up on the day driven by strength in AT&T. Despite the ongoing macro concerns, euro strengthened […]

Please See This Chart!

Please see where the S&P 500 is and where the VIX sits…last time VIX was at current levels the S&P was very toppy…just before the August fireworks.

Morning Thoughts Feb 24

BEST SECTORS: E&C +4.1%, Housing +2.2%, Biotech +2.2%, Brokers +1.6%, REIT +1.4%, E&P +1.3% WORST SECTORS: Solar -6%, Airlines -1.3%, HMO -0.9%, Utilities -0.3%, Fertilizers -0.2%, Coal -0.06% Strong showing on thin vlm – SPX futures (ESH2) hit key 1,350 early and bounced – Nasdaq100 another fresh 11yr high close (despite AAPL didn’t announce a […]

Two Key Charts From 2011

The dollar index.  The story this year has been the continued inverse relationship between the dollar and risk assets.  After selling off in the early part of the year the dollar has overcome significant headwinds and showed resilient strength that looks promising for further continuation upward.   The dollar has gone nowhere in 2011 if we […]

Bucket 2 Trade Idea: SBUX

Note the up-trending channel in Starbucks (SBUX) since 2009.  We are not at the top of it and are slowing down.  At the very least one would expect a pullback to the low $40s or below for a little mean-reverting trade.  We may sell far out of the money calls at the beginnig of the […]

Morning Thoughts December 21

Our cautious stand on the short side (very few short positions) paid off yesterday and as suspected a rally arrived that left serious wedgies on many who piled into fresh shorts on Monday.  While anything is possible in this tape it does look likely for stocks to rise further in the next few weeks.  On […]

Portfolio Holdings Dec 21

85% Cash Bucket 2 Symbol Open D Direction Sectors Avg Entry Stop Target 1 FDX 12/16/2011 long Indu 85.1 80 90 SPY 15-Dec long INDEX       MMM 9-Dec long Indu 81.73 77.5 85   Bucket 3 Symbol Open D Direction Sectors Avg Entry Stop Target 1               […]

Above the downtrend channel now

So far this morning the S&P 500 has broken above its 12 day downtrend channel…as have many other stock indices both stateside and in Europe:

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