Monday March 31 2014
We suggested EEP and TLT were breaking to the upside in our wekeend report. This morning with stocks up, EEP and TLT are backtesting retreating to try out the short term MAS, those breaks.
It is typical chart graphics form for a breakout to fall back and re test the moving averages before advancing again. This shoould allow a better entry point for the true believers. Closed end munis are doing the same this morning but to a lesser extent.
WARNING DO NOT FALL IN LOVE WITH ANY POSITION
I am still of the view that we are at a 40 year period of inflection. We are likely to see violent moves and reversals across many sectors just as TLT fell from 128 to 100 and now to 110 and RAX went from 40 to 80 and now to 32, all in relative short periods of time. The same goes for the energy sector. We are five to six years out from the 2008 high in oil and then the six month collapse. See front page article of WSJ today of the danger of expecting big returns in Central Europe Asia.
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