Wednesday links: anxiety and complacency

• abnormalreturns
• October 20th, 2010

Quote of the day

Daniel Drezner, “In going for the short-term gain, China is inviting a long-term containment policy.” (Foreign Policy)

Markets

Bearish sentiment is at a five-month low.  (Bespoke)

Still no signs of anxiety in the volatility markets.  (SurlyTrader)

QE2 complacency is increasing risk relative to reward in the equity market.  (TheStreet)

The public is still wary of the “hair-trigger moves” that the equity market makes.  (Tech Ticker)

Taking a closer look at ETF short data.  (FT Alphaville)

Managers are optimistic about emerging markets, but think they are overvalued.  (beyondbrics)

Despite a huge rally, Turkish equities trade at a discount to the overall emerging markets.  (beyondbrics)

You want more local currency emerging market bond ETFs?  WisdomTree has got them!  (IndexUniverse)

Strategy and Tactics

How to deal with trading multiple accounts with different time frames.  (SMB Training)

Why the actions (and reactions to) of brand-name hedge fund managers matter.  (The Reformed Broker)

How much weight should we put on the coming “golden cross” in the S&P 500?  (Trader’s Narrative)

David Varadi, “Our desire for simple rules for trading, and simple laws for describing our world come at the expense of the reality of what the market actually is—anything else is a childhood fairy tale.”  (CSS Analytics)

On the benefits of comparing and contrasting stocks within and across industries.  (AR Screencast)

Wall Street

Wells Fargo (WFC) the least bad big bank.  (Street Sweep)

Hedge fund, FrontPoint frees itself from Morgan Stanley (MS).  (Bloomberg)

In retrospect, bailed out firms engaged in all manner of bad behaviors.  (Big Picture)

Foreclosure-gate

Mortgage bondholders, including its own affiliate, are suing Bank of America (BAC) to take back bonds.  (Bloomberg, Clusterstock, Dealbreaker, Calculated Risk, naked capitalism, NetNet, ibid)

Why Wall Street is so freaked out by the put-back issue.  (NetNet)

Off Wall Street

How cash for investment yields a fast track to a green card.  (Daniel Gross)

Once again, how is it legal for Congress (and their staffers) to trade on material non-public information?  (Kid Dynamite)

Economy

Five arguments against QE2.  (Econbrowser)

“The global economy will only really rise again when the corporate zombies that stalk the world are finally nailed to the stake.”  (The Psy-Fi Blog)

Why looking at the growth rate of economic indicator, like the ECRI WLI, can be misleading.  (A Dash of Insight)

Why we should pay attention to austerity plans in Britain.  (Atlantic Business also Credit Writedowns)

Are robots going to put us all out of work?  (Free exchange)

China

How to do a Chinese IPO.  (The Reformed Broker)

A great deal of confusion about whether China has  halted the shipment of some rare earth metals to the US.  (NYTimes, CNBC also Zero Hedge, Clusterstock)

On the attraction of a “strangle” on the iShares FTSE/Xinhua China 25 Index ETF (FXI).  (Barron’s)

Why China resists currency reform.  (Curious Capitalist)

Who is getting the short end of the stick when China buys US Treasury bonds?  (CBP via Money Game)

Technology

Comparing iPad to iPhone growth.  (Asymco)

The war between broadcasters and cable has spilled over onto the Internet.  (Slate)

kaChing becomes wealthfront, loses its social media cache.  (TechCrunch, Investment News)

Just Because

Any post that mentions Johnny Fever of WKRP in Cincinnati fame is worth a link.  (Infectious Greed)

“Seinfeld” brings economics alive.  Brilliant.  (The Economics of Seinfeld via Free exchange)

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