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Monday, June 28, 2010

Market Thought... waiting

My short-term thesis has not changed from the previous Market Thought post 'think ahead'. The thesis is playing out, with the 10yr yield approaching 3.0, although the treasuries are very overbought (meaning the bonds need to sell off, raising the yield), and the SP500 has declined some and is oversold.

Since last week, the market churn has allowed the 320SMA to achieve 1041-1042. This means there is a fairly sizable support level at the 1040 level.

The names I will be looking to get in, as the markets decline to the 1040 level have not changed.

Since I already to C the other day, and already pretty long GS, I want to continue adding to IBM (although already my largest position) and NAT.

ON A SIDE NOTE: Read an article today regarding freight container shortages. Thought it was interesting because the BDI does not correlate to the article. I would expect to see the BDI higher due to this shortage. Will keep my eye on this trend, but a container shortage is a fairly bullish development.

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