Stranger and stranger said the Red Queen…



With the major indices taking off like the space shuttle it is strange that the basic group of ETFs is so recumbent.  We looked at the basic list and found a mess of them with uninspiring charts.  The indices are making new highs and these ETFs are basically listless:  IAI (brokers), MOO (cows) RTH (retail),  XHB…  The IWM (Russell) is in this class, and even the oil, USO is mostly sideways.

Some are not only not listless but are downright depressing — FXE, XLF, INP, DBA.

Of this whole group the ones which showed some vigor (as Jack Kennedy would say) were the Chinese FXI, the Qs, obviously the SPY and DIA and EEB.

In a way this fits with our fundamental economic observation — consumer spending is in the pits (not the trading pits — the mining pits), the brokerage business is in the pits (look at the volumes), the home building business is in the pits (not the wheel changing pits, the coal mining pits),  the agriculturals are in the pits.  And why not?  With unemployment at depression levels and Goldman slaughtering the fatted calf with obscene bonuses again and Senator Demented trying to torpedo health care reform it’s enough to make you want to move to New Zealand.

What this country needs is a good five cent cigar — or a good new C&W singer.

Maybe we should move to Brazil instead.  The best thing there since Gal Costa and Elis Regina is Marisa Monte.  Except for Diana Krall the Brazilians have all the best singers.

Obviously we’re getting frazzled.  Time to take off to the Hamptons for vacation, where all the real traders are this month.  You should do this too, instead of participating in all this naked mud wrestling.  Take with you O’Brian’s Aubrey-Maturin series and Fraser’s Flashman series for  really delightful beach reading.

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