Tuesday, January 26, 2010

Today's Lunch Time Advisory

Despite the early weakness the markets are making the effort to hold up today. Some Commodities and several Internationals (mostly the EMs) slipped to new lows for the correction this morning, but the major US benchmarks are in the green for the time being.

The dollar and the nippy should continue to find favor on the foreign exchange markets, brief retracements aside. The fallout from Japan's downgrade or whatever at S&P lasted all of 20 minutes last night (early this morning). Is a negative outlook for Japan's credit actually a positive for the currency? Sure why not? A new era of fiscal restraint in the US and Japan? Sure why not? (Just keep in mind that an 'era' these days has a duration of between two weeks and six weeks...)

Regional Banks, my preferred segment of the stock market, are making gains again today, with the $KRX up about 1.6%. PVTB (highlighted yesterday) jumped another 14% this morning. I know 18 and 14% gains must seem rather staid to all you .V Adventurers out there, but hey, I'm just happy to be on the right side of things for once.

Gold's not dropping, silver came back from the brink. Lot's of potential for a breakdown in the Complex, but it's a sketchy situation.

Advice for the day? Start looking at the Insurance space, there might be enough relative value there to warrant attention. (This a 'note to self' really.)

Mahlzeit!