Blog Archives
Rationally Bearish on Bonds
May 9, 2011
Good morning. It was a very interesting week last week for investors, especially those who either trade commodities or have used security ETFs to gain exposure (chase returns) into the commodity area. The SPY was down 2.23 (1.6%) to close at 134.20, not a very significant amount given the recent rally, but the VIX, possibly seeing what can happen when sellers arrive and longs are forced out, was up a whopping 25% to close at 18.39.
Bin Laden and the Trickle Down Theory
May 2, 2011
Good morning. It was another solid steady move to the upside last week, with the SPY rising 2.65 (2%) to close at 136.43. This move, again, comes under the general umbrella of lower dollar and higher commodity prices in line with the expansionary monetary policy being maintained by the Federal Reserve. Today we have the added bullish sentiment accompanying the raid on Osama Bin Laden’s compound in Pakistan, during which he and several companions were killed by U.S. Special Forces.
Floating Them Trillions
April 11, 2011
Good morning. The market was slow and virtually unchanged last week, with the SPY closing down a scant .28 at 132.86. The VIX was up slightly (.48) to close at a still relatively low 17.39. There was a little more movement in interest rates, with the 30-year bond rate up.15% to close at 4.63%.
Laughter, Disbelief, Anger
March 21, 2011
Good morning. Volatile and down week for the market last week, despite a solid bounce off the Wednesday lows. The SPY was down 3.08 on the week to close at 127.76 (2.3%), which was still a solid 2.48 (2%) off the low made on Wednesday afternoon. The news regarding the Japanese earthquake damage and subsequent tsunami, soon overwhelmed by events at the nearby nuclear reactor facility, dominated the trading for the week. A big upward reaction to the market was directly associated with a coordinated G7 (first coordinated intervention in over ten years) move to stop appreciation of the Japanese yen in the aftermath of the disaster.
Revolution in Wisconsin
February 28, 2011
Good morning. Rising tensions in the Middle East caused the market to have its first down week in a while last week, with the SPY closing (despite a strong rally on Friday) at 132.33, down 2.24 (1.7%). The VIX spiked higher to finish at 19.21, up 3.32 (17%) from a very low close before the three-day weekend of 16.43.