Trader’s Narrative

Last week issue of Barron’s went after Xinhua Financial Media (XFML) because of its relationship with Shelly Singhal. This is a classic method employed by the shorts. Since people rarely change, follow around the “bad apples” and short any company they are involved in.

Xinhua is also an Chinese ADR which is the “it sector” […]

Greenspan’s comment which rocked markets yesterday, dominoed into Asia overnight and boomeranged back to the US markets (how many mixed metaphors is that?). But the market didn’t need any help from the Maestro to roll over. We’ve had three days, back to back, where the S&P 500 attempted to rally, only to be driven back […]

Since I last mentioned WallStreak, Ugly has made incremental improvements to the site. And I hear more are coming in the near future. Eventhough I don’t always post, I’ve been checking out Wallstreak.com during the trading day.
If you’re not familiar with it, WallStreak is an online hangout (chatroom) for traders during the day. Most […]

While sentiment data and my proprietary sheeple index are interesting, they are both circumstantial evidence.
To see what people are actually doing, we have to look at funds flow or liquidity data. The last time I brought this up was last summer when a skittish public started pulling out significant funds as a result of […]

I’m seeing a lot of attention directed towards the weakness ni the US REIT sector:

the CBOE Dow Jones REIT Index (DJR) weak relative strength
DJR formed a clear “head and shoulders” pattern
the weakness in the real estate market in the US
DJR just fell through long term support at the 200 day moving average […]