S&P cash recovered OK and its chart looks like a bullish continuation pattern. The Nazz and Nazz 100 were flatish, but those charts were better anyway. The Russell 2000 is still the weakest - that will hurt the beefers this Q. The Dow Industrials chart looks strong. Trannies are OK, too. I still have that S&P long futures position - it's a trade, by the way.
EDU reported OK earnings - small beats of estimates on EPS and revenues. EDU is an Alpha Fund long position.
Soybeans and natural gas got smashed yesterday - ugh! My commodities trades have stunk lately. It's good I reduced my position sizes and leverage there. Still long. Joe keeps pounding the table on a very hot August. I'll give him some more rope.
Inflation data points: homeowner's insurance on my Mom's house in Ohio is down 10% year over year. This is an example of how inflation is low away from the coasts and Florida and areas overwhelmed by rich people buying everything. Starbucks raises prices - well, anyone being gouged $5 or more for a cup of coffee can't rationally complain about inflation.
Underwriters are having trouble selling some LBO debt - I hear the issue is terms mainly. The terms of last spring are long gone - they were idiotic anyway. This is a problem with bridge loans. The borrower has less incentive to agree to market clearing terms & rates, since they have a deal already. I guess underwriters are re-learning a lesson of the late 1980s.
These very large Chinese equity investments in private equity firms and deals are interesting. I'm still noodling over them.
PS: stocks went down hard today. It's wierd that I hear all this talk of disaster & panic from the traders and perma-bears like Bill Gross (wrong for over a year), yet is a single fact actually discussed? Maybe I'm missing them. Or they aren't there. Hmm. people who lend money to weak credits are ... losing some money ! What a shocker. I'll think some more. So far this looks like a beefer bear raid on the XLF. They can short that with impunity, especially in the summer. And with derivatives. Oh well. I'll have to figure out if anything is different.