Wednesday links: reaching for yield
Reaching for yield almost always ends badly. (Big Picture also FT Alphaville)

Category: General Market Tags:
Entropy, or Why the World as We Know It is Dying
The concept of entropy is one of the most useful terms for understanding just about everything. While it has its origins in natural law — thermodynamics, specifically — the concept holds true pretty much across all closed systems.
In the simplest of terms, every closed system will ultimately degrade toward a state of maximum entropy.
FSA Requests Additional Stress Testing
Britain officially emerged from its two-year recession in the final quarter of 2009, but a recent communiqué from the country’s main financial regulator, suggests that a return to recession is not out of the question. The Financial Services Authority (FSA) recently requested that financial institutions undergo another round of “stress tests” to ensure the nation’s major banking institutions can withstand a greater decline in growth than originally projected.
S&P 500 Near New Highs
The stock market is higher again this morning, defying those who continue to call for a pullback. I have been talking about how even though the market had become overbought, instead of pulling back it mostly went sideways while the overbought condition got worked off. This was a positive sign, and as you can see in the chart below, the oscillator has confirmed the recent highs in the market by making a higher high.

Category: General Market Tags:
Foreign Creditors are going to want Higher Returns
My friends tell there are huge monies sitting in cash, awaiting some divine signal.
It’s a weird world. All logic suggests interest rates should much, much higher.
Don’t Look for Financial Firms to Return the Favour
Don’t look for financial firms to return the favour
Congress is working on plans to rein in the questionable activities of Wall Street, and re-direct the self-serving focus of major banks. I wish them good luck with that.
Financial firms are fighting back with propaganda blitzes aimed at raising public fear.
For instance, independent economists are debating the pros and cons of moves announced in the U.S. and the U.K. to remove some of the stimulus efforts that rescued the financial firms this time, such as the U.S.

Category: Fundamental Analysis Tags:
A Rolling China Short Candidate

Category: Fundamental Analysis Tags:
Jim Rogers Says Watch It All
The crew over at Wall Street Cheat Sheet posted a quick interview they conducted with Jim Rogers. There was one line in there that really resonated with me and was something new (to me anyway) in terms of his usual message. More like an addition to his usual message.
Oil Prices Will Eventually Change Everything Drastically
I was plying the interstate highways of New England this weekend — there is no sane way to get from Albany, New York, to the vicinity of Middletown, Connecticut, by public transit — marveling at the vistas of normality all around me: the freeway lanes with their orderly streams of happy motorists, the chain stores floating like islands on the gray undulating landscape, the corporate towers of Springfield, Mass, and then Hartford, gleaming in the persistent pre-spring sunshine, as though they physically represented the wished-for dynamism of economies in recovery.

Category: Commodities Tags:
Monday links: large cap laggards
Happy birthday, bull market! (Crossing Wall Street)
How overbought are the markets here? (Trade to Learn)

Category: General Market Tags:
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Popular Today
- 7NYT: The Lithium Chase
- 7Pledge Update March 2010
- 6EURUSD Developing A Triangle
- 6United States Natural Gas Fund, LP (UNG)
- 6Bookkeeping: Cutting Rackspace Hosting (RAX) to Holding Position
- 6Kathy’s CNBC Interview: Upside for the Yen?
- 6What Makes Prices Move?
- 6State of the Market - 3/11/10
- 6Entropy, or Why the World as We Know It is Dying
- 5Bookkeeping: Closing Potash (POT) - Will Look to Deploy into Another Commodity
