Today- I put positions back on for SRS and IWM (i.e. short the IYR and short the Russell 2000). They are not big positions, but just a bit of a probe to the short side. The smallcaps have been lagging, and I think they look vulnerable here; plus REITS look very vulnerable here, never really have gotten out of their bear phase so I think it's worth a shot.
The big macro story that has been going on for the better part of a month is the sudden increase of long rates. I spotted it a month ago, plus I blabbed about it here ad nauseum last month but now it finally seems as if the financial media is catching up. The story according to CNBC is that higher long rates will put the damper on all this crazy M & A activity...by the way, when did they stop calling them LBO's (leveraged buyouts)? I suspect the term LBO's got a bad rap in the '80's and never fully recovered, so now we call them something different. I'm feeling another wave of cynicism coming on...
The good: GOOG is acting well this morning.
The bad: IYH (Ishares healthcare ETF) is teetering over the 50-day EMA...could get
UGLY: REITS, Utilities,SBUX, SHLD, COH is on the verge, in short any stock that is interest rate sensitive is on the chopping block.
BNI is looking ready for some more distribution (sorry Ma), Dupont has been underperforming the rally, and now might lead the downside if the Dow gets hit.
There's lots more looking bad, but there's also a lot looking pretty good, but those stocks need to come in.
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