Posted by: jhamon | September 1, 2009

MysteryHedgie: Trading Top In?

I am still in the throes of launching our new fund – hope to be back in the saddle soon. 

In the meantime, this morning MysteryHedgie wrote:

As September begins, we’ve returned from a brief but pleasant vacation.  As stocks and commodities continue to trade near their yearly highs and the $ near its low end, we detect two changes from last week.  First, markets react indifferently to strong economic news (this AM’s US ISM for example) and second, players fully understand that the US (financials specifically) have replaced China as the leader in current rall… below chart shows BKX outperforming SHASHR by 39% during August.     

With CNBC “celebrating” the anniversary of the financial meltdown, it seems unlikely that the same stocks that were near death, now up several hundred percent from the lows, can lead a new leg higher.  We think it likely that August has once again built in a trading top for assets….                     

BKX outperforms China... for how long?

BKX outperforms China... but for how long?

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