Tuesday's Tidbits

Hooray, an up day! Here are some things to consider.

My bullish SPX indicator lives to see another day, perhaps it'll make a new X by the week's end.

FINALLY, the BXM/SPX spread is heading lower, and that is a sign of more aggressive risk taking which is good for equities. Due to the overbought condition, a gap open tomorrow in the SPX should be faded if this chart can't get below the 10sma.

The equity/bond spread has stabilized over the last month, but I suspect we're in for a breakout to the upper Bollinger.

Hrmmm, this is tricky. The Yen might be worth getting back into, but that doesn't jive with my reflation scenario. USD/YEN is a must watch because of the chart below.

Japan has broken its massive downtrend, and looks capable of hitting the upper Bollinger. If the Japanese market is rising with a strengthening Yen, I think I'll go invest in Japan to take advantage of the equity and forex trends.

Jibbidy jabbber jab, I don't want to repeat myself tonight. I could talk this shit all day, but it's pointless when I have better things to write. We're still going up, but don't bet the farm, because the decreasing volatility is still high and can make you loose your shit faster than a hooker with rubber sheets.

Today's Twitterd Tickers $APOL $JASO $POT $SOL $SVNT

Here are the tickers making noise on StockTwits

APOL is in an uptrend and rising on increasing volume. This looks like a strong candidate for further upside, but it remains under resistance.

The strong volume is indicative of accumulation, but since JASO is in a downtrend, bets on further upside are high risk.

POT has managed to make some ground since I first covered it here. Though it is enjoying a short term uptrend, the volume has been anemic and I remain suspicious.

SOL had a huge rally, and while it may have more upside, pros like TK are taking profits. This is a risky long.

SVNT is showing a nice breakout with strong volume. The primary downtrend makes this a speculative long, but the pattern offers a good risk/reward setup.

My primary indicator has remained positive for awhile, and thus I'm relieved to see some bullish action. I'm currently in IWN, DBC, and EEM, but I sold my TBT this morning for a b/e trade; bonds just aren't ready to go yet :( Things feel overbought and I expect a pullback, but the picture continues to grow bullish. Risk remains high, but the uptrend has yet to fail.

Off the record, there are some assholes appearing on StockTwits. We all know who they are, and somehow, I can't seem to stop following them. I enjoy watching these tools act like total fuck clowns, because I'm praying for their public demise and subsequent humiliation. God forgive me for my malicious thoughts, but truly, some of your animals test my resolve. One of my New Years resolutions is to be more hospitable towards blustering idiots, but it's Dec. 31st, so fuck em.

Monday Mutterings

It was a choppy roller coaster day, but there were some bright spots.

International markets stayed afloat as commodities moved up.

The financial sector finds itself in peril once again. Stay away from the big names who are too big to fail. Their bond holders might see cash, but the equity gets wiped out.

HYG printed another near term high, but the upper Bollinger is a good place to take profits.

Treasuries made a new high, but in an ominous fashion, reversed and sold off sharply till the end of the day. I've acquired some TBT and will add more if the tape presents itself.

The weakness in equities and strength of commodities versus bonds was unusual. I purchased a tiny amount of DBC to take advantage of the money leaving Treasuries.

Short trades continue to pay, but the weakness in bonds is divergent with the direction of equities. The money leaving the safety of bonds must go someplace, potentially energy and precious metal related categories. This market continues to move slowly relative to the past few months, but stay focused and take advantage of the few opportunities 2008 still offers.