TradingMarkets Top 5 Of The Day
Welcome to TradingMarkets.com Top 5 of the Day!
In this nightly feature, the editors of
TradingMarkets select the 5 best and most insightful (and sometimes humorous)
excerpts from all of the articles and blogs that have been published throughout
the entire day.
Here are today’s selections:
Dave Landry from:
Her name is still Rio
“…The indices appear to be
resuming their downtrends out of pullbacks. No rocket science there–just trend
following moron stuff. Considering this, continue to avoid the long side. On the
short side, trail your stops lower on existing shorts, take partial profits
when offered, and keep an eye out for new positions. Interest sensitive areas
such as the REITS and Mortgage Investment look poised to make another leg
lower. …”
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Tim Truebenbach from:
When rates rise, these stocks often rise
“…Trading individual
stocks has proven to be quite hazardous in the current environment. Shakeouts,
breakouts and everything in between has proved the norm and have made for a very
uncertain investment. The market itself has had a clear trend in place since
October of 2002 when it put in a bottom, but intermediate ups and downs have
also been normal. ETF’s and index funds have helped smooth out returns and may
be a great consideration. Another investment to consider are medical and
biotech names (BBH).
This group tends to do well in rising interest rate environments. …”
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Rob Hanna from:
What the VIX says about the next big move
“…The
market sold off fairly hard today as the bounce completely lost steam and rolled
over. This should come as no surprise to anyone who has read my last couple of
columns. What’s worse is that VIX levels barely budged — apparently today’s
selloff didn’t worry anyone. That’s not good…”
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Ron Sen from:
Here’s why current breadth favors the bulls
“…There’s
a battle of oversold (breadth) versus overbought (TRIN) worthy of the Japanese
horror flick superstars today.
The three day MA of the TRIN is at 0.68, the lowest it’s been since May, and the
10 day moving average of NYSE breadth is at -721, its lowest value since March
of 2005. TRIN10 is at 1.11 and heading south. I’m inclined to give the benefit
of the ‘push-back’ doubt to the bulls here, with the caveat that the 20 day
moving average/central Bollinger Band would be logical decision-zone territory.…”
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Kathy Lien from:
5% interest rates ahead? Here’s the real story…
“…After
last Friday’s sharp surge in consumer prices, we saw analysts from the leading
investment banks step out to tout the possibility of 5% rates. Although we think
that this is a bit far fetched given the dark clouds hanging over nearly every
piece of data we have seen over the past few weeks, it does confirm that the
dollar will continue to benefit from higher interest rates and hold onto its
title as the favorite carry trade currency to go long in 2005.…”
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