Two Ways: Bond Market Shows Fear
Strengthen your portfolio in good times and bad.
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!
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