It’s been a heck of a week and it looks like the trades are in for the year for the most part. Today is expiration day for futures and options, so I doubt we see much of anything other than a slow grind higher….because that’s what markets do these days.
Wanted to quickly point out, though, that there are some interesting “flys” in the mix that make me wonder “hmmm”. Names like FXI (China), EEM (Emerging Markets), BBY (Best Buy), V (Visa) and MC (MasterCard) all have had some funky action in what looks to be a bullish tape.
Of course, these are anomalies, outliers, oddities that don’t really affect the markets as a whole. But it is interesting how misses in earnings, or a slight change in laws or even a slight concern of Chinese inflation can swing sentiment to an extreme reversal.
Not an issue yet, but are these signs of the January turn showing up? Don’t know, but I will have my radar up, looking for catalysts, especially coming from International markets, that may give the general markets a bit of a spook, which almost seems needed at this point.
Maybe that, too, will help The Ben Bernank drive some demand back to bonds, which is what he desperately needs right now.
Have a good Friday and a good weekend! Trade the extremes!