Another higher open to kick off Hump Day Trading with a pretty solid
broad based move across various sectors of the markets – ex oil and
other commodities. Still no real signs of a big rotation in commodities,
but that could change at any time.
More importantly, while stocks have continued their resilient ways,
bonds have continued to trade sideways for over six months now in what
we’d consider to be a fairly wide range. However, although some would
think the move in bonds is a basing effort to work their way higher,
it’s our thinking the recent consolidation is only likely to trigger
another move lower when it’s all said and done.
Since the bond markets are often referred to as the smarter money, the weekly chart below reveals more of a exiting behavior than it does an accumulation one, especially when it’s pretty clear bonds have been under siege for quite some time now. Sure, they could rally short-term, but the long-term landscape still doesn’t look good for bonds.
That’s a good thing for stocks considering money on Wall Street has no home. In others words, as long as bond investors are opting for stocks, it should be good for the overall landscape of equities.
We’re still convinced the volatility could pick up again any day now, but as long as these markets don’t completely start to unravel, any sort of pullback should still be viewed as a buying opportunity. We just wouldn’t consider one or two days of downside a pullback. We’re referring more to a good solid selloff – like the one it looked like we might get last week.
Although none of our three short-term ideas are turning any heads yet, we’re getting some good performance in a few of our most recently added long-term ideas. FCX still hasn’t quite decided to make a big move yet, but it is a stock that over time we still believe is going to perform well.
It’s tough to see a running market and have stocks in one’s portfolios not want to follow suit, but a little patience can often go a long way. And, if you’ve exercised the whole buy and hold strategy over the last few years, you’ve done extremely well with many of those quality names we’ve been suggesting all along the way.
Since the bond markets are often referred to as the smarter money, the weekly chart below reveals more of a exiting behavior than it does an accumulation one, especially when it’s pretty clear bonds have been under siege for quite some time now. Sure, they could rally short-term, but the long-term landscape still doesn’t look good for bonds.
That’s a good thing for stocks considering money on Wall Street has no home. In others words, as long as bond investors are opting for stocks, it should be good for the overall landscape of equities.
We’re still convinced the volatility could pick up again any day now, but as long as these markets don’t completely start to unravel, any sort of pullback should still be viewed as a buying opportunity. We just wouldn’t consider one or two days of downside a pullback. We’re referring more to a good solid selloff – like the one it looked like we might get last week.
Although none of our three short-term ideas are turning any heads yet, we’re getting some good performance in a few of our most recently added long-term ideas. FCX still hasn’t quite decided to make a big move yet, but it is a stock that over time we still believe is going to perform well.
It’s tough to see a running market and have stocks in one’s portfolios not want to follow suit, but a little patience can often go a long way. And, if you’ve exercised the whole buy and hold strategy over the last few years, you’ve done extremely well with many of those quality names we’ve been suggesting all along the way.
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