Market lower on low volume. The lack of volume is troubling. Individual company shares are going up as much as 5%++ a day on little volume. That cannot be sustained. Unless we get more enthusiasm this ramp is not sustainable.
Copper stocks rolled over this morning, corrected, and have risen. Added a little to FCXprM. It trades like doodoo so be careful. Watch the spread, its a killer.
Bunge (BG) is behaving well and I added a small amount. It, too, trades in a quirky pattern.
Having sold all my Treasuries on Friday I was pleased to see the cover story in Barron’s: “Get Out Now”, referring to government bonds. You will recall that I have been buying junk bonds through an ETF, JNK. Wish I had bought more. JNK was mentioned in the article. Both JNK and another junk bond fund, HYG, are experiencing significantly higher volume as they go up. A good sign. I am tempted to buy more. Its tough to pull the trigger, however, on a position that has advanced as nicely as JNK. Lets see how it trades after the Barron’s bounce is over. Those not wishing to take the risk that JNK involves could look at LQD, an investment grade bond fund. It yields about 5% versus JNK’s 14% and HYG’s 10%.
