- The stock market has that consolidating feeling this week, no? After the emotional roller coaster the past two weeks where we sold off quickly and then just as quickly rallied back up to the top of the bull market, I think we're all feeling a little woozy.
- Hat tip to REO Speedwagon (not pictured) for the blog title idea.
- I mentioned "the playbook" the other day saying that the week after options expiration week tends to be weak. Bernie Schaeffer chimes in:
Our historical research reveals that the week following options expiration hasn't been as reliable in terms of gains. Just 7 of 17 weeks (41.25%) have ended with a positive finish in the SPX. Given that this 18-month period encompasses a rather steady bull market, 41% positive weekly returns is actually quite low. Looking at all non-expiration weeks over the period, 29 of 56 have closed positive. Combining this with expiration weeks (13 of 18), we effectively have seen 56% of positive weeks overall. Take out the "week after expiration" data, and we have 61% positive.
- (Hat tip to Adam Warner for the Bernie linkage.)
- We're picking up speed through June and cruising to the official end of Spring and start of Summer. The next play in the playbook is the end of month 401(k) stuff, end of quarter stuff, and then the July 4th holiday stuff. More as we close in...
- Yesterday's volume was extremely light. Almost as if we've hit the summer doldrums already. I remain conservatively positioned for the summer, with low beta holdings, cash, and trading a few mo-mo names. Nothing much has changed in the strategy. I don't anticipate being more aggressive until later in the summer or fall. I still believe we're going to see a correction this summer.
- Home starts fell for the first time in 4 months. Home starts in the U.S. fell for the first time in four months in May as interest rates rose, suggesting the worst housing recession in 16 years will persist. Before housing recovers, inventories need to come down.
- Yahoo stock has struggled, and CEO Terry Semel has been replaced with co-founder JerryYang. Mr Yang's return to the forefront of Yahoo! revived speculation the company might be poised for more drastic changes, including partnerships with media and technology rivals, or even a merger. For some great "Yippee!" and "Bah!" comments on Yahoo, see Barron's Tech Trader column.
- Dr. Jeff with some random musings...
- Of course, with Fantastic Four doing well at the box office this past weekend, today's post IS AGAIN dedicated to Jessica Alba (nude, naked, topless, stripping, smoking, dancing, bikini, Honey, Dark Angel). Saving the planet is a tough job, but I thank you for the hard work, dedication, and form-fitting outfits.