Featured Trades: (USE THE MELT DOWN TO LOAD UP ON INDIA), (EEM), (PIN), (INDY), (EPI) 2) Use the Melt Down to Load Up on India. Take a look at the chart for the emerging market ETF (EEM) below and you will be surprised to see how well it has held up in the recent collapse.
Featured Trades: (TREASURY 30 YEAR AUCTION BOMBS) 3) Treasury 30 Year Auction Bombs. If you want to see what a failed Treasury bond auction looks like, take a look at the intraday chart for Thursday's sale of 30 year paper, which was a miserable failure. Prices dove and yields soared, from a near 40 low
Featured Trades: (JOBLESS CLAIMS SEND BEARS FLEEING) 1) Jobless Claims Send Bears Fleeing. The single most important coincident indicator you can follow, the weekly jobless claims, showed a modest improvement, sending bears fleeing. The figures released at 8:30 am EST every Thursday had claims fall by 7,000 to 395,000. This is the third consecutive
Featured Trades: (THE TRUE COST OF OIL) 2) The True Cost of Oil. I received some questions last week on my recent solar pieces as to whether I minded paying more money for 'green' power. My answer is 'hell no,' and I'll tell you why. My annual electric bill comes to $1,500 a year. Since
Featured Trades: (BERNANKE SAYS BUY STOCKS, OR ELSE!) 2) Bernanke Says Buy Stocks, Or Else! I believe that the risk markets are discounting a recession that isn't going to happen. Not yet, anyway. So I am going to start adding some small, limited risk call options here. After analyzing the statement from the Federal Reserve
Featured Trades: (IS QE3 BACK FROM THE DEAD?) 2) Is QE3 Back From the Dead? When I went to bed late last night, the (SPX) was trading down 30 points, and I was thinking 'here we go again'. When I woke up, the market was up 30 points, and I had to blink hard.
Featured Trades: (THE WORST CASE SCENARIO) 3) The Worst Case Scenario. 'There is oversold, and there is OVERSOLD'. That was a comment made by my friend, technical analyst Arthur Hill, in the wake of the Dow's breathtaking 634 point crash. Some indicators were showing the most oversold levels in 12 years. I think that
Featured Trades:? (THE SECOND SHOE FALLS IN THE DOWNGRADE CRISIS) 1) The Second Shoe Falls in the Downgrade Crisis. Today, Standard and Poor's fired the second barrel of its shotgun at the credit worthiness of the US with its downgrade of Fannie Mae debt from triple 'A' to AA+. Other government-backed securities are soon expected
Featured Trades: (JAPAN'S RECOVERY STARTS EARLY), (EWJ) 2) Japan Recovery Starts Early. It looks like the second half of the 'V' shaped recovery of the Japanese economy, the leg up, is starting sooner than expected. Long time readers of this letter already know that in the wake of the March tsunami that hit Japan
Featured Trades: (WHY I'VE BEEN WRONG ON THE MARKET), (SPX) 3) Why I've Been Wrong About the Market. On Friday I was fairly convinced that we are close to a bottom in the market at 1,166. As I write this the next day, I am staring at the (SPX) futures ticking down to 1,114.60. I
