QE II is having the expected effect on commodities. I fail to see how this is good for the economy as a whole.
Capital continues to flow to emerging markets as evidenced by rising currencies. It isn't exactly an undiscovered trade though and governments are starting to enact capital controls of various sorts to reduce the inflows.
Speaking of crowded trades, gold stocks moved to new highs again last week.
Asian real estate continues to be a major beneficiary of Fed policy. It isn't cheap and there are worries about a bubble but these things tend to go further than anyone expects.
US REITs aren't exactly lagging either. Dividend yields are historically low but the trade continues to attract income investors.
Coal stocks broke out last week too.
In the metals, platinum has been a bit of a laggard but it's starting to play catchup.
The dollar index fell below the long term uptrend line briefly last week and is hanging on by the skin of its teeth. Sentiment is very negative but a bounce would not be a surprise.
The long term Treasury ETF is nearing support but it appears the downtrend is established. The yield curve has steepened; shorter term maturities are still in uptrends.
I could show you lots of Asian market charts that are making new highs but Japan is the only one that no one really likes. And it's the only one that is really interesting anymore.
Europe is another area that has a good chart and negative sentiment.
I first highlighted Russia a couple of months ago. The uptrend is now pretty well established but the market does not look expensive if commodity prices keep rising. The biggest risks would appear to be political.
I may have to start calling this the Alfred E. Neumann market. What? Me? Worry?
I also highlighted the broker/dealer etf a couple of weeks ago. They broke out last week.
Oil service stocks are nearing resistance so a pullback should not surprise. I like them long term though so corrections should be seen as buying opportunities.
Global energy stocks look attractive even after the recent run up.
Even the financials joined in the party last week.
