Monday, June 25, 2007

Themes and Ideas to Start the Week

* Money Flows Continue Strong - I recently posted re: money flows among the Dow stocks; my update to the Trading Psychology Weblog tracks flows in the S&P 500 and finds considerable strength, despite weakness in several sectors and waning strength among my main indicators. The Weblog summarizes my basic view on the stock market at this juncture.

* Hedged Rally - If you get a chance (and I may post separately on this topic), take a look at volume patterns among the Proshares Ultra Short ETFs, such as SMS, QID, and TWM. Volume spiked hard on the Feb. 27th market plunge and has stayed elevated ever since. Recent market action has elevated volume even further. If I'm reading this correctly and my volume data are accurate, it suggests quite a bit of hedging--perhaps a bit of that wall of worry that bull markets are said to climb.

* Great Reading to Start the Week - The Big Picture offers its Weekend Linkfest, including a very interesting piece on a possible clean-tech revolution that may sprout from growing environmental concerns in China. A theme worth tracking.

* Excellent Post on Buybacks - This one is from Laurel Kenner and Victor Niederhoffer, finding an edge among stocks purchased by insiders. A screening criterion worthy of inclusion.

* Move Toward Leadership - Trader Mike tracks the major averages and notes how the NASDAQ has behaved quite well, holding above trendlines. The Semiconductor Index has looked especially strong. Oil/Energy, Materials, and Industrials have been strong sectors for a while; Technology has recently joined their ranks.

* ETF Perspectives - Check out the readings at Abnormal Returns, including a look at BRIC ETFs how differences in ETF structures could affect tax treatment.

* Yield Curve and Stocks - Bespoke Investment Group and Seeking Alpha note a negative correlation between the curve and stock prices, an interesting dynamic given recent steepening.

* MidCap Picks - The excellent StockPickr site highlights five highly-rated midcap issues; check out Tesoro and Varian in two sectors with good money flows.