Excerpted from Notes From the Rabbit Hole #240, dated May 26, 2013.
Alan Greenspan gave them the playbook (Credit & Debt Manipulation 101) and now Ben Bernanke and global inflators everywhere have taken the ball and run with it in new, innovative and levered up ways. Actually it’s a game of Whack-a-Mole and they play it well, these inflating moles. The minute you think you’re going to drop the hammer on one of their heads, he’s gone and another one pops up elsewhere. (more…)
This Daily comparison chart of the SPLV (which is an ETF containing the top 100 lowest-volatility stocks in the S&P 500 Index) with the SPX shows that they have traded pretty much in tandem since the ETF’s inception.
However, that correlation diverged in mid-May and the SPLV has now made a lower closing swing low on this timeframe. Furthermore, the Momentum indicator has dropped below the zero level signalling potential further weakness ahead. (more…)
It has been a little while since I’ve done a post here, but the returns in the model portfolio have been steadily rising. We are now up 8.4% since February.
With gold finally waking up over the last couple of days, I thought it was high time that we checked on the how GDX was doing technically. Specifically, I wanted to figure out what the chances were for further downside movement, or whether GDX had formed a bottom and it was time to jump in. (more…)
Fannie Mae was trading at nearly $70 in early 2004 and, four years later, cratered to eighteen cents. What’s most remarkable to me is that there is a gap between trading that ended on September 5 2008 and the following Monday, September 8. That’s when the financial crisis popped from 3rd gear immediately to 5th, and it never looked back………until this week. (more…)
Looking at ES this morning there is an ambiguous looking triangle forming there. A little W bottom has formed at yesterday’s lows, and the target for that pattern, and triangle resistance, are in the 1665 area, so we may well see that level hit today: (more…)
Here is the chart:
Should be a great day today. See you all after the close