Quote Critique

"A market is the combined behavior of thousands of people responding to information, misinformation and whim." - Kenneth Chang (NY Times journalist)

Misinformation and whim probably account for more market trading than I'd like to imagine.

Portfolio Theory $DBC $EEM $IWN $IYR $PLW

Here is the weekly rundown of the 5 least correlated liquid ETFs.

DBC is showing some signs of life on minuscule volume. Intuitively, I'm bullish commodities, but since they remain in a technical downtrend, I remain cautious.

Emerging markets are bouncing within a newly formed downtrend. EEM looks capable of rallying from this point, and may be forming the right shoulder of a HS pattern.

The small cap value sector is showing a light volume bounce, but remains in a downtrend. Short term optimism for IWN isn't unwarranted, but stay cautious.

IYR still looks like an unmitigated disaster, but it is putting in some upside work. Real estate remains incredibly volatile, so a run up to the upper Bollinger may be in the works.

Treasuries have started to show some convincing weakness, a new low would be a boon for equities. Though PLW is in an uptrend, I'm preparing to buy TBT.

Equity markets are incredibly weak, but the potential for a rally abounds. Although few stocks are in bullish formations and volatility remains high, a bounce through inauguration is not out of the question. This remains a day trading environment as weakness in the financial sector can turn a 3% rally into a 4% dip.

Quote Critique

"The public may boo me, but when I go home and think of my money, I clap."
- Horace (Roman poet-critic, Epistles, c. 20 BC)

The boos of the public don't concern me, but I plan on dying penniless, surrounded by the people I love. Money has incredible value, but only if you can give it to others. Perhaps I'll feel differently in 10 years, but clapping alone doesn't seem like much of a life.