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Those $1 Happy Meals are just what the doctor ordered for contemporary America, right? Sorry, I just couldn’t resist the image and metaphor.

I did promise in the financial comment a link to Philip Greenspun’s blog (must be a contrived name…if not, my apologies). Herein he describes just how our big banks make money with your money. It’s called fixed-income leverage. And did you happen to see that twice failed (LTCM) John Meriwether was launching a new hedge fund to trade bonds with leverage? You’ll no doubt be ringing him up.

We sheeple have no idea what yesterday’s big sell-off was all about but evidently no one else knows either so the dip buyers entered. It’s definitely a strange environment with valuations sky high as they were back in 1999-2000. But with cash yields this low and plenty of liquidity sloshing about combined with peer performance pressure, it’s a combustible situation.

Again, in after hours trading AMZN and others are doing quite well.

click to enlarge


Often, perhaps like you, just before sleeping I ponder what tomorrow will bring in the markets. All I have is the current news and seem to have a pretty good idea as to how things will open the next day. But then I’ll know the news cycle will continue while sleeping and perhaps things will be dramatically changed. They often are.

Let’s see what happens and you can follow our pithy comments on twitter.

Disclaimer: Among other issues the ETF Digest maintains positions in: SPY, RSP, VTI, MDY, IWM, UDN, GLD, DBC, USL, XLE, EFA, EWC and EEM.

The charts and comments are only the author’s view of market activity and aren’t recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations aren’t predictive of any future market action rather they only demonstrate the author’s opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at
www.etfdigest.com.

Source: Friday Outlook: Commodities, Global Markets