* Deterioration - Quick update of my recent overview: Despite a late day surge, we're seeing deterioration among the broad list of NYSE, NASDAQ, and ASE shares. Friday saw a reduction in the number of 20-day highs (383) and an expansion of new lows (1270). Even after the late rise, Demand closed at 52 and Supply finished at 105, which means that twice as many issues closed below their volatility envelopes as above them. The picture continues to be mixed with respect to technical strength: 11 stocks in my basket finished strong, 15 neutral, and 14 weak. I continue to play off strength or weakness in key sectors and stocks--most notably the financial issues--for intraday trading, which has been helpful. Playing off the early distribution of the NYSE TICK was also quite useful Friday.
* Mental Fitness - Just as our daily lives don't provide enough exercise to keep us physically fit, our daily routines do not sufficiently exercise our brains. Interesting post from Sharp Brains.
* Trading Scared - Here's a thought-provoking view from John Forman about how the best trades are hardest to take. I have to say that my experience is different. I find the best setups easy to take, because all the parameters have been researched in advance. For me, the hardest part is sitting through choppiness on the way to a price target. I'm often too quick to take the quick profits. The fat, profitable tails of returns, however, are often what differentiate the winning traders from the losers.
* More Good Links - The difficulties of bailouts and a comparison of TIPS and Treasuries are among the views unearthed by Abnormal Returns. See also the excellent updated links from Trader Mike, including efforts to predict stocks 30 seconds into the future.
* Where the World's Money is Headed - Very interesting post from an excellent site: January's challenges for hedge funds contribute to the convergence of traditional and alternative asset management.
* Value Investment and Earning Growth - This one takes a couple of readings, but it is very, very good: an examination of the limitations of the PEG ratio.
* Which Stocks Rallied - Nice investigation of which stocks did and didn't participate in the late day rally Friday. Gives a worthwhile insight into how fast money flows and, by reverse logic, which stocks traders are most worried about with respect to credit concerns.