Jobs Report Stronger Than Expected
The market is rallying again in early trading after a much better jobs report than the consensus was looking for. Nonfarm payrolls for August fell 54,000 but that was far less than the 120,000 that was expected. Moreover, private payrolls rose 67,000, which was considerably stronger than the 44,000 expected gain.

Category: General Market Tags:
VQT: S&P 500 With A Volatility Hedge
Barclays yesterday (9/1/2010) launched the Barclays ETN+ S&P VEQTOR ETN (VQT) exchange-traded notes (ETNs) that are linked to the performance of the S&P 500 Dynamic VEQTOR Total Return Index (press release).
Barclays takes “dynamic indexing” to a new level with VQT. The underlying index can be dramatically reconfigured on a daily basis and employs a stop-loss mechanism. The underlying index seeks to provide broad U.S.

Category: Fundamental Analysis Tags:
Solid Retail Sales, Pending Home Sales Boost Stocks
After yesterday's outsized rally, the market is higher in early trading following some solid reports. In economic news, pending home sales rose +5.2% in July vs. expectations for no change. So that is a pretty solid report.
Also, same-store sales for the nation's retailers came in for the most part better than expected, and that is pushing the retail index (XRT) up +2.25% so far today, leading most ETFs. The homebuilding etf (XHB) is up +2.63% on the above-mentioned report.
Market Soars On Strong PMI Data
Busy morning for me so far, so I'll have to keep this post brief. The market was already set to open higher after upbeat data out of Europe and Asia had those markets trading higher.

Category: General Market Tags:
Tuesday links: helicopter cash
James Montier, “In essence, the [bond] market is implying a 70% probability that the US turns Japanese.” (Behavioural Investing)

Category: General Market Tags:
S&P Tests 1040 Level Again
The market has been both lower and higher already in early trading, as a few economic releases swayed early trading. The CaseShiller Home Price Index for June rose to 148.0 from 146.5. That was a slight improvement, but most of the housing slowdown that has been talked about began in July, so this report will likely be taken with a grain of salt until we see how July fared.

Category: General Market Tags:
Monday links: subtle signals
The high yield bond rally seems to be slowing. (EconomPic Data, research puzzle)
The state of asset class momentum. (The Capital Spectator)

Category: General Market Tags:
STOCKS VS. BONDS:
In the forthcoming TSAA Review there is an article by GGU Adjunct Prof. Nolan Olhausen which reopened my eyes to a tight inverse correlation between stocks and bonds, primarily Treasuries. Since 2007 there has been a mirror image of these, as shown by comparing the TLT to the SPY on a daily basis - almost as though it were a zero sum game.
Another tight correlation, also coincident, is one I've espied for years in the IBD (Investors' Daily), on the chart page, between the DJIA and put/call trading Volume below it - also inverse.

Category: General Market Tags:
Friday links: dividend demand
The market should be down today. Why not? Sentiment. (AR Screencast)
The presidential election cycle is about to turn positive. (Crossing Wall Street)

Category: General Market Tags:
Top clicks this week on Abnormal Returns
Thanks for checking in with us this weekend. Here are the items our readers clicked most frequently on Abnormal Returns Now and Abnormal Returns Classic for the week ended Friday, August 27th. Where applicable the description is as it reads in the relevant linkfest.
Abnormal Returns Now:

Category: General Market Tags:
Navigation
Tag Cloud
Popular Today
- 6The Current Hottest Stocks
- 6Cooking Up An Inverse Head and Shoulder Reversal
- 6Trading In Emerging/Exotic Currencies Increases
- 6Very Good Non-Farm Payrolls Report
- 6Guesstimates on September 3, 2010
- 5Daily Market Commentary: Low Volume Gains
- 5Link Roundup: Transmission Trouble Edition
- 5Star Money Articles and Carnivals for the Week of Aug 30
- 5Bookkeeping: Some Sales
- 554,000 US Jobs Lost Last Month
