Archive - Sep 12, 2010 - Blog entry

Stocks are headed for a big multiple compression. Go long the beneficiaries of the relentless running of the printing presses in Washington. Once the spike in interest rates starts, it will be “a big, big bear market,” that could go on for decades. An exclusive interview with the legendary hedge fund manager, Bill Fleckenstein, on Hedge Fund Radio. (GLD), (NEM), (AEM), (GG), (TBT), (TMV), (VZ), (AAPL), (FXC), (CYB), (CU).

As predicted in May, DB honors its obligation to flush good shareholder capital down the toilet.

Last week I forecast that the stock market would likely rally to test its 200-DMA. We didn’t quite get there, but that’s largely due to the fact that no one was actively trading the market last week.

Indeed, thanks to a holiday week that entailed both Labor Day and Rosh Shoshanna, market volume was truly abysmal. In fact, last week saw even lower market volume than during April 2010 top, which should give you an idea of just how few participants were involved:

This weeks analysis of the Commitment of Traders and Retail Positioning research. Tools to trade against the herd.

Buying conviction remains a big question as volume was the lowest total for any week since Christmas, 2009.

A bold idea? Or a dumb plan?

The bears were certainly back in town for the Euro, news out of Europe has been mixed. German macro data has been disappointing, showing that the overall euro area is entering a period of weaker growth. Also this past week, some European peripheral countries, and especially Portugal, Ireland, Spain and Greece, saw a rise to record levels in their 10-year bond and CDS spreads.