Monday July 2, 2012
This weekend we suggested there were still plenty of doubt among the public and fund managers that a stock rally has begun. That of course reflects the mood present during a Wave One move up in prices.
Here are headlines from this morning's Money and Investing Section in the WSJ,
Stocks Out of Fashion, Amid more Bonding page C1, this features a graph showing money piling into bonds just as it piled into dot.coms from 1999 to 2000 providing the last 2000 point move in the NASD
Turn the page to C2 and we read
Treasury Selloff May be Brief as Cheer Fades - Bond mangers look to scoop up US Treasuries on the cheap after Friday's sell off
In fact Treasuries are still flirting with the most expensive levels of all times. As we said this this will afford a couple of 'lines in the sand' for the chart of TLT that we detailed this weekend when managers finally bail 1.6% ten year Treasuries in favor of stocks.
And on the front page India steps up its imports of coal and natural gas, so natural gas continues to grow legs as an investment.
We wil update more with suggestions, little action after the rally Friday but again I suspect the markets will pull back after Wednesday in light trading.