Tuesday, June 05, 2007

Trading Ideas and Resources for a Tuesday

* The Themes Continue - In my weekly post to the Weblog I noted the inverse relationship between the Yen and the S&P 500 Index. Note how the theme continued on Tuesday, with strength in the Yen and weakness in U.S. stocks. Note also that we continue to move higher in the 10-year interest rate, per the recent post that warned of reduced stock returns with rising rates. (Rennie at Market Tells links inferior stock returns to 52-week bond lows; Trader's Narrative offers a contrary view).

* InstantBull Continues to Add Value - Nice to see that this excellent aggregator of blogs, news, and chat is receiving recognition in the business community. Now a new feature lists blogs by their popularity, as ranked by Alexa and Technorati. Great way of staying on top of the most popular blogs--and discovering some new ones. Also check out the "hot" tab on the home page (top left); it lists stocks that have received the most search interest over the past four days. I might just check out some of those issues vis a vis money flow and other trading patterns to generate trade ideas.

* Winning Streak for Stocks - Another aggregator I really like is Seeking Alpha, which organizes a wide range of posts by category, including ETFs, China, energy, market outlook, currencies, economy, and much more. This post from Bespoke Investment Group looks at what we can expect when the S&P 500 Index has been up 5 days in a row. My own results suggest that momentum within that five day period, as measured by my Demand/Supply Index, helps to identify whether prospects are bullish or bearish after five days of strength. We had been losing momentum going into Tuesday's dip, with Demand at 54 and Supply at 54; down from 121 and 36 on May 31st.

* Mean Reversion Among Portfolio Managers? - Charles Kirk has a fascinating observation regarding the portfolio selections of hot managers. This might be one way of identifying shifting themes in the markets: what was hot previously is now underperforming. Also check out the excellent links compiled by Kirk, including a provocative chart of the stock market denominated in gold.

* Trader Mike Nails a Theme - Thanks to Mike for his recent links re: Covestor and VesTopia, including this interesting piece from David Jackson of Seeking Alpha. This is Web 2.0 for investors, and the methodology of pulling trades from account statements is quite clever. Not as emphasized, for obvious reasons, are contrarian applications of the data. Great way to see which sectors/themes are drawing interest. See StockTickr for another Web 2.0 implementation, but for traders.

* A Blog Resource You Might Not Know About - The TraderBlogs site is a collection of blogs with a variety of themes, including some sophisticated perspectives from John Ehlers and trading wisdom from Ryan Jones. See also Robert Colby's tracking of top ETFs. Good stuff!

More fine links to come!