Watching the market May 20, 2014: Diagnosis – Sanguine and desultory

Price action declared that fixed income was a winner in Q1 2014 + and there is a steady rise in the equity indices, unaccompanied by the “trend” strength and lately tepid volume (no surprise at the moment as Memorial Day and spring becomes summer). Eyes on the Yen, palladium (Putin “premium”? Who knows.), OIS (Einhorn play), and treasuries. We use prices, so maybe the cream is off the top or the bloom off the “rose” for treasuries, but with a tepid market and TEPPER replacing TAPER for the market ennui animus, it might not hurt to place a bid, as we wait for confirmation of a correction that is more than one “through time”.

Just as happy pulling a “Livermore” and sitting in a mountain retreat metaphorically.

In the meantime, still riding WFT, PDS and SUNE (einhorn and Ein HURTING at the moment).









Right now, treasuries have confirmed Gundlach (of Doubleline fame)’s target of 2.5 yield. Maybe the “easy” money is off but if the market does MORE than correct “through time” and begins to do it through PRICE, this trend may continue. Meantime, USTs yield the most compared to a lot of other sovereigns. The quest for yield and/or to sit out equity gyration is a reality at the moment, I won’t even bother discussing Millennial aversion to equities and baby boomer retirement as factors, which you can heap onto the pile of the debatable “whys”.





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