Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways: Bond Market Shows Fear


Strengthen your portfolio in good times and bad.

The US stock market may be having its sharpest gains for the first six months of the year since the Great Depression, but bond markets aren't sharing the enthusiasm. According to Bloomberg, investors aren't convinced of a strong recovery, and are seeking protection in bonds, pushing yields on government debt to the lowest levels since April.

Merrill Lynch's Global Sovereign Broad Market Plus Index, a gauge which tracks $15.4 trillion of bonds worldwide, gained 0.73% this month, the most since March when it gained 1.02%.

For more on the markets, see Professor Vinny Catalano's Four Ways to Beat the Market.

From the Bull Pen: If you believe in the long-term picture of the foreign markets, the scary selloff last night in China is offering an opportunity to average in. Consider adding a small portion to the Morgan Stanley China A Share fund (CAF). For those with a shorter time frame, a sell stop can be set below $29-30.

From the Bear Cave: If a correction is in the works, those bearish may want to consider using puts on the S&P depository receipts (SPY). Watch out for "Turnaround Tuesday" as nonsensical as it may be, and remember to set a buy stop (around 103.40-103.50 may be prudent).

Quick Check Around the World

Asian trading closed with the Nikkei -0.40%, India -1.61%, Hang Seng -1.86, Shanghai -6.74%, and Taiwan 0.24%.

Across the pond, we see the FTSE (Closed), CAC -0.68%, DAX -0.68%

As of 8:10 a.m. EST, S&P Futures are trading +4.75 to 1034.00 and Nasdaq futures are +6.75 to 1645.75.

A Look at Commodities

Over in commodities, crude oil is trading -1.27 to 71.47 while gold is -2.60 at 956.20 this morning. Silver is -0.084 to 14.70 and copper -4.500 to 287.80.

The dollar index is +0.1650 to 78.5500.

On the Radar


09:45 Chicago PMI 47.2 cons.

Click here for the full trading radar.

Welcome back, Minyans! Good luck!
Position in SPY

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.

Featured Videos