Alex Strashny, Ph.D.

Not exactly an encore of yesterday's sweltering pace, but stocks manage to finish an uninspired session in positive territory. Dow +0.22% (+19.19) to 8,740.63. S&P +0.2% (+1.92) to 944.79. Nasdaq +0.44% (+8.12) to 1,836.80.

Materials (XLB), which I recommended, are +1.00% for the day. As I said, materials is outpacing the broad based indices.

Bonds sold off on stronger than expected pending home sales, but rallied back to finish near the day's highs. 30-year +0.79% to 116-29. 10-year +0.25% to 117-10. 5-year +0.18%. 2-year flat. Dollar got hammered: Euro +1.17%. Yen +1.15%. Pound +0.93%.

Don't forget munis (AFB), which I recommended. +1.07% for the day.

Bond-giant Pimco throws its hat into the ETF ring with its first exchange-traded fund, the Pimco 1-3 Year U.S. Treasury Index Fund (TUZ), designed for investors "focused on relatively stable principal value and avoiding credit risk." Pimco's foray into ETFs could be a potential game-changer for an already fast-growing segment.

You can make money in bonds now, though not Treasuries. Look at munis (AFB), which I've recommended.

Futures are relatively flat after Monday's strong gains and an uneventful Tuesday session overseas. Dow -0.1% to 8678. S&P flat at 939. Nasdaq flat. Crude -0.9% to $67.94. Gold +0.1% at $980. April pending home sales are due at 10:00, and May auto sales numbers will start showing up at about 12:00 p.m. (see full calendar).

Just looking at the broad indices could be misleading. Some sectors are doing better than others. Materians (XLB), which I recommended, are doing well.

Smashing Start to June

You are right -- materials (XLB), which I've recommended, are going strong. As for bonds, instead of Treasuries, I think right now is a time for munis (AFB).

Telltale Signs That a Significant Correction Isn't Imminent

Time frame is a major factor. Some people think that there will be a major crash / correction in the long term and trade accordingly. But they should be trading according to what is actually happening now.

Right now, the trend is <b>beginning<... to be up. Materials (XLB), which I recommended, are doing particularly well. When the trend flattens out, then it might be time to get out.

S&P 500 Breaks Above 200-Day Moving Average

That's great news. Within S&P 500, materials sector (XLB), which I've recommended, is doing especially well.

Tuesday Outlook: Commodities, Global Markets

Stocks have been risky until relatively recently. But an uptrend is beginning to be seen. And some stocks are doing better than others. I've recommended the materials sector (XLB), which is continuing to do well.

After an hour of trading, stocks are still rising steadily. Dow +2.2% to 8,687. S&P +2.4% to 941. Nasdaq +2.6% to 1,821.

Materials (XLB) is one of the strongest sectors. It's up 3.46% thus far for today.

Despite much public worrying about America's AAA credit rating and growing deficit, the bond market shows international demand for U.S. financial assets is as high as ever.

Instead of speculating about what _might_ happen, let's see what is actually happening. Bonds, in particular munis (AFB, VFL, NCL) are in a strong uptrend.

Federal Reserve Balance Sheet Update: Week of May 27

But the trend in muni's is up.

Wednesday Roundup: FOMC Minutes Cast a Shadow on the Green Shoots

Materials (XLB) is still going strong.

Hawkins (HWKN): Small Cap Growth Stock at a Major Discount

Good article. Materials (XLB) are certainly doing very well right now.

Financials - Up 39%in Q2, Will They Continue Rewarding?

Materials (XLB) certainly looks like the best pick at the moment.

Federal Reserve Balance Sheet Update: Week of May 27

There are always good opportunities, even in what might seem like risky markets. Though treasuries look scary, munis (AFB) have been doing great. Same with stocks. Though some industries are imploding, the materials sector (XLB) is doing great.