Dabbling in Debt

Fixed income ETF's continue to show strength in a weak market.

I continue to add to my HYG position as the momo in this ETF has yet to wane.

After closing my LQD for a hefty gain, I've made a smaller reentry with a tight stop.

Emerging market debt continues to make solid gains, but the lack of volume in this issue makes it a terrible trading vehicle.

SHY is losing momentum, but I wouldn't get short too quickly.

I'm nibbling at these Muni's, but with such bleak economic news and weak volume, I'm just as liable to get short if the market moves against me.

Surprisingly enough, the debt market remains resilient in the face of mounting adversity. With so much potential for continued government intervention, the market favors debt to equity. Most of these issues have fundamental problems, but if Uncle Sam is putting in a bottom, then it is a risk I'm willing to take.

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.

What Credit Crisis?

Who would believe it if I said AAA Bonds are in an uptrend?
Good volume and a new Bollinger touch bode well for companies with good credit.

With Treasuries getting bubbly, AAA corporations are offering higher yields and reasonable safety. If there is a credit crisis, it isn't showing up in LQD.