New Themes and Old

A few things to watch this week.

Even though the dollar has had a bounce, US bonds are still under performing global ones.

India looks poised to make a run with this second Bollinger violation.

The defense sector is making a break. Guess we're gonna need a war to end the recession.

My TRAN indicator has gone bullish, so this up move looks like the real thing.

The utilities sector has been basing for over 2 months. If energy costs remain low, this sector will have fundamentally sound legs to invest in. Sadly, without momentum, this is a dividend play.

The action in the bond market doesn't bode well for the dollar. Foreign securities still hold an edge, but there are domestic sectors worth looking into.

Market Movements

With the dollar going down faster than my H.S. prom date, let's see where we stand.

The emerging markets like Brazil and India are breaking downtrends and upper bollingers.

LQD continues to rip north on large volume, but I'm getting out for larger returns in precious metals.

While there are many gold miners, few are trading at 52 week highs. RGLD is best of breed until further notice.

The USD has pierced a lower Bollinger, so deflation fears may turn into inflationary ones.

Despite the down day in USO, $WTIC was up today, I'm looking to leverage long oil.

Here comes the wave of "quantitative easing." Sell the rips in the dollar and buy something tangible like a company that makes shiny things. This could get ugly.