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.

Today's Twittered Tickers $HK $UNG $ICE $PALM $RIG

Tickers making noise on StockTwits

HK looks like it is heading lower, maybe back down to 9.

If the market heads down, ICE looks like a low risk short, but the recent strength is more bullish than bearish to me.

PALM could double and still be a terrible investment. Risks are very high.

Massive volume is always a nice place to cover shorts, but RIG looks like it's headed lower.

My best trade of the day was a surprise long in UNG. It remains a high risk long, good for day trades only.

Props to @dvolatility for spotting the UNG trade early in the day. A nice post on the rational can be found here. Being short during the day continues to pay, but my fixed income trades in $JNK, $HYG, $LDQ are still prospering. $GDX and potentially $EEM are the only equities I'm comfortable going long, everything else looks short.

Market Makeup

A rundown of various market themes for tomorrow's trade.

Despite the hefty haircut in the QQQQ's, my NASDAQ indicator is still bullish. Buy the dip is still in play until I see some O's, but I'm taking very small positions.

The BXM/SPX ratio is bearish as long as it is printing X's. Nevertheless, it is approaching resistance and a 10sma downtrend.

After mentioning HYG here, I rode today's wave up and I'm adding to it as the tape presents itself. JNK also has breakout potential.

Another bullish indicator is the rising summation index.

The first sign of potential inflation is here as the spread trend between the 30Y Treasury and Gold begins to loose momentum.

Today's action was a little hairy for a buy the dipper, and if there wasn't such a strong late day rally, I'd be pretty worried. Tuesday will be critical as further weakness will likely make my SPX indicator bearish. Smooth trading to all, and happy Hanukkah to my fellow tribesmen.