Friday, August 17, 2007

Market and Trading Perspectives for Week's End

* What's Held Up - We saw some hunting for yield on Thursday; I notice that PEY--the dividend yield ETF--has held above its prior lows and saw nice buying. Those consumer staples have also held up reasonably well as hedges against recession: PG, KO, JNJ. Shares in Japan, on the other hand, are feeling the effects of a resurgent Yen and have shown recent weakness. GS continues as my proxy for concerns about the financial sector; hard to imagine sustaining a reversal in the broad market while those financial stalwarts are making new lows.

* Links on the Meltdown - TraderMike updates his links, including an excellent perspective on the problem with housing loans. Abnormal Returns chronicles divergent views on the market and the economic consequences of the housing mess. The Big Picture offers an important insight on what happens when institutions unwind their leverage. Daily Options Report reports on what's happened to buy-write strategies as volatility has soared. I like how DK Report has been tracking this decline, and Chris Perruna has done a fine job of staying on top of the bear themes.

* What the Volatility is About and What to Do About It - Great, great perspective from Larry Connors, including a historical look at what happens after spikes in VIX.

* Insightful Site - Thanks to a sharp blog reader who pointed out this informative site on the credit markets. Here's a unique perspective on how recent events have hit the retail bond investor.

* Exercising the Brain - I predict we'll see aging baby boomers turn toward activities such as trading as mental stimulation, not just income production--part of an emerging "use it or lose it" set of priorities.

* Trading Eurex - Here's a link to a free Webinar hosted by Market Delta.

* What's On Traders' Minds? - Here's what's most popular at the Wikinvest site.