Monday Morning Musings

The markets are slightly higher in early trading, despite a real lack of economic and corporate datapoints. Of course, earnings season heats up this week with some big names reporting, like Intel, JP Morgan, and Google. Should be interesting.

Asian markets were up nicely overnight, led by China's +2.5% surge. Japan was closed for a holiday, but the Yen continued to climb to 15-year highs. Has anyone noticed how many holidays they have in Asian where the stock market closes? Today is Columbus Day, and our bond market is closed. I think we need some more stock market holiday's.

The volatility index (VIX) is moving to new multi-month lows, down -6.95% below the 20 level today (19.27). Investors seem to want to buy any dips, and maybe some new money will come in off the sidelines if the Dow can remain above the 11,000 level that the media loves to mention.

The dollar is flattish, while oil prices are down a bit to $82.25, and gold prices are off slightly near $1344. While the price of gold certainly appears extended, the competitive devaluation process of central banks trying to push their currencies lower to help boost export demand seems to be supporting the notion gold wanting to go higher.

Trading comment: Nothing really new in terms of our recent market comments and thought process. We're staying long, but still have some cash ready to take advantage of a pullback. Lately, pullbacks have only been quick 1-2 day affairs, so you really have to have your buy list ready to pull the trigger.

Today I am seeing a few more small breakouts from stocks that have lagged, with the likes of CSTR, ATHR, STEC, BRCM, BLK, etc. Semis are beginning to play catch up also, while retail stocks have continued to climb in the face of investor doubt.

long ATHR, BLK, CSTR, GOOG