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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Jack of All Trades who wrote (40443)	11/14/2012 8:48:01 PM
From: Keith Feral	Respond to of 222682

If the VIX were 20 or 25 right now, I'd be a lot less nervous. Lack of nervousness in this kind of a decline still leaves room for more nervousness, I guess. At the same time, the bond market isn't exactly freaking out either. It's still range bound between 1.60 and 1.80. Market has been as low as 12,500 and as high as 13,000 with the 10 year yield at 1.60 over different price points since last May's meltdown. Most of the post election sell off has been people that didn't take down profits above 13,000 before the election or computer programs doing the selling for them or a combination of the 2. With the bond market only giving back 9 bp's this month, it doesn't really seem to indicate high levels of macro concern. The Euro pulling back from 1.30 to 1.27 isn't much of a confirmation for this kind of panic sell off either. Oil and gas prices have been very stable too. Gold's been acting relatively strong, nat gas prices have been stable, and even copper prices haven't been getting whacked too hard - right around 3.45. That being said, gold stocks have been getting mauled pretty hard, oil stocks are getting slammed, and equities in general are making a long overdue adjustment to actually create some value again as yields get back up near the higher end of their range, or even making new yield highs. One positive aside from the increase in yields would be announcement of several new acquisitions. NLY announced a deal the other day, SBUX announced another deal today, and I'm sure we could see more deals along the way. Balance sheets are still in good shape to buy revenues and new growth at decent prices. I'm sure there is still some sectors that could use a little more work on the downside, but values get better as the technical damage to the market gets worse.