Top Trading Links: Don’t Fall For The Market Lull-aby

The overall market was quite bland into the long holiday weekend. Undoubtedly, it’s been a stock picker’s market. Given the recent sentiment surveys, it’s safe to say many managers followed the chaser’s playbook.

But don’t let the the holiday induced stock market lull you to sleep. There were lots of great reads around the financial web, so let’s dig in to this week’s “Top Trading Links”.

Market Insights

The S&P 500 is testing a major fibonacci level via @hedgopia

@JLyonsFundMgmt penned a trilogy on the Dow Theory Divergence:

“However, also like most divergences, this one has given its share of false signals as well. The majority of these occurred during the strong run up in stocks during the mid-1990′s.”

@ukarlewitz: ”Investor opinions have become extremely uniform. By some measures, they are the most uniform in 25 years. In the past, this has corresponded to a period where equities have lacked significant upside momentum.”

Can bank stocks lead the market higher via @andrewnyquist

Even though treasuries have pulled back, many bonds are showing strength via @fabiancapital

@skrisiloff analyzes the divergence between stock prices and earnings:

Via @andrewnyquist An updated look at Apple’s technicals

Via @hedgopia an options trading idea in Twitter

A longer term technical look at Palladium and Platinum via @corymitc

James Montier’s latest report on Fed policy:

“As to when fiscal policy may come back onto the potential policy agenda is certainly beyond my ken. But until it does, our situation may be likened to fighting with one arm tied behind our back, with a badly functioning prosthetic being forced to do all of the work.”

A follow up to Montier’s take via @pragcap

Large cap M&A is on fire this year via @Dealogic

What hinted at a major rally in crude via @kimblecharting

Trading & Investing Insights

7 steps on the path to success via @SJosephBurns

Robert Shiller on the economy:

“Though the 2008 financial crisis has passed, we remain stuck in the emotional cycle that it set in motion.”

Knowing which forecasters to ignore

Why are economic forecasts so bad? via @MishGEA

“As a self-preservation mechanism, economists are trained to be bullish.”

Why Wall Street is wired to produce bubbles

Happenings & Research

• Illinois is the new Greece

• The toys to life fad is growing momentum

• Google and Twitter’s search partnership continues to grow

• Governments across the globe are paying more attention to currency manipulation

• The Shanghai Stock Exchange is planning a startup market

• The single household economics just aren’t there yet for buying a Tesla battery pack

• A look at what the U.S. imports and exports

• @cdixon on exponential growth curves

• Will drones replace satellites?

Thanks for reading!

Follow Aaron on Twitter:  @ATMcharts

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.