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Utilities Sector Continues to Be a Great Market Tell
The sector's outperformance with bonds is warning that volatility will increase.
Michael A. Gayed    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

This is an environment that I believe is going to continue to surprise everyone. Never before have we seen four days in a row where US small caps are down, and emerging markets are up. Long-duration Treasuries have held strong despite Fed tapering, and Brazil is in the midst of a melt-up. US equities have been wavering back and forth, and all the action is in the areas most people thought with 100% certainty would be terrible places to park money. Make no mistake about it -- this is a strange tape. Defensive sectors have been warning that volatility was on the verge of increasing for a couple of weeks now. Utilities in particular have been a tell. 

The soon-to-be available white paper "An Intermarket Approach to Beta Rotation," which my colleague Charlie Bilello and I cowrote and which won the 2014 Market Technicians Dow Award, touches on this very sector as a leading indicator of markets. Normally I'd be more concerned seeing such strength in bonds and utilities, but the fact that emerging markets are ripping higher is bullish. Given how one-sided the developed versus emerging market trade has been for over three years, I suspect funky behavior is going to continue for some time.

Twitter: @pensionpartners

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.

This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Pension Partners, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

More From Michael A. Gayed
Utilities Sector Continues to Be a Great Market Tell
The sector's outperformance with bonds is warning that volatility will increase.
Michael A. Gayed    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

This is an environment that I believe is going to continue to surprise everyone. Never before have we seen four days in a row where US small caps are down, and emerging markets are up. Long-duration Treasuries have held strong despite Fed tapering, and Brazil is in the midst of a melt-up. US equities have been wavering back and forth, and all the action is in the areas most people thought with 100% certainty would be terrible places to park money. Make no mistake about it -- this is a strange tape. Defensive sectors have been warning that volatility was on the verge of increasing for a couple of weeks now. Utilities in particular have been a tell. 

The soon-to-be available white paper "An Intermarket Approach to Beta Rotation," which my colleague Charlie Bilello and I cowrote and which won the 2014 Market Technicians Dow Award, touches on this very sector as a leading indicator of markets. Normally I'd be more concerned seeing such strength in bonds and utilities, but the fact that emerging markets are ripping higher is bullish. Given how one-sided the developed versus emerging market trade has been for over three years, I suspect funky behavior is going to continue for some time.

Twitter: @pensionpartners

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Pension Partners, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

More From Michael A. Gayed
Daily Recap
Utilities Sector Continues to Be a Great Market Tell
The sector's outperformance with bonds is warning that volatility will increase.
Michael A. Gayed    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

This is an environment that I believe is going to continue to surprise everyone. Never before have we seen four days in a row where US small caps are down, and emerging markets are up. Long-duration Treasuries have held strong despite Fed tapering, and Brazil is in the midst of a melt-up. US equities have been wavering back and forth, and all the action is in the areas most people thought with 100% certainty would be terrible places to park money. Make no mistake about it -- this is a strange tape. Defensive sectors have been warning that volatility was on the verge of increasing for a couple of weeks now. Utilities in particular have been a tell. 

The soon-to-be available white paper "An Intermarket Approach to Beta Rotation," which my colleague Charlie Bilello and I cowrote and which won the 2014 Market Technicians Dow Award, touches on this very sector as a leading indicator of markets. Normally I'd be more concerned seeing such strength in bonds and utilities, but the fact that emerging markets are ripping higher is bullish. Given how one-sided the developed versus emerging market trade has been for over three years, I suspect funky behavior is going to continue for some time.

Twitter: @pensionpartners

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Pension Partners, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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