Quote of the day

Derek Hernquist, “It takes a rabid belief in one’s potential to become an expert in any field, and trading is no exception.”  (Derek Hernquist)

Chart of the day

Transportation stocks are once again outperforming.  (StockCharts Blog)


A look back at first quarter performance.  (Capital Spectator, Bespoke)

A look at inter-market relationships and what it says about the health of the market.  (StockCharts Blog)

More on rising correlations and the risk on/risk off trade. (NYTimes)

Keep an eye on the technology sector for clues to the market’s direction.  (Dragonfly Capital)

The bank index as a “canary in a coal mine.”  (StockCharts Blog)

What are the bots up to these days?  (Pragmatic Capitalism)

Are there still opportunities in distressed debt?  (Distressed Debt Investing)


Dave Kansas, “Don’t let the siren song of ETF marketers sway you.”  (WSJ)

Why you should avoid complex (yield) instruments.  (Aleph Blog)

You have to know when to break your own rules.  (chessNwine)

Using macro momentum to select individual stocks.  (CSS Analytics)

Why do some closed-end funds trade at wide, persistent discounts?  (Morningstar)

Do investors really trade based on their stated expectations?  (CXOAG)


Both NYSE Euronext (NYX) and Nasdaq OMX (NDAQ) rose Friday on the news of the Nasdaq bid.  (Barron’s)

Can the Feds live with a combined Nasdaq-NYSE?  (WSJ, Bloomberg)

Transocean (RIG) shows just how far shareholder democracy really is.  (Bronte Capital)


iPhone vs. Android.  Apple (AAPL) stock vs. Google (GOOG).  (Howard Lindon, SAI)

A look at the ‘wall of worry‘ surrounding Apple stock.  (Barron’s)

The NFC battleground.  Will mobile payments take off in the US in 2011?  (Mashable)


Why go public?  The ingredients behind the rise of privately traded secondary markets.  (Felix Salmon)

Does Silicon Valley have an insider trading problem?  (NetNet also Howard Lindzon)

The Sokol incident shows just how pervasive conflicts of interest are in the world of finance.  (WSJ, ibid)

David Sokol was wearing one hat too many. (Contrarian Edge)

Vanguard is jumping into the actively managed emerging market equity space.  (Morningstar)


Assuming QE2 ends, what comes next?  (FT Alphaville, Bruce Krasting)

The market needs to digest the prospect of a less accommodative Fed.  (Market Anthropology)

Is inflation really an issue?  (bonddad blog)

What would happen to inflation if housing prices had been properly accounted for?  (Floyd Norris)

Earlier on Abnormal Returns

ARTV with Mick Weinstein talking transparency and the financial blogosphere.  (Abnormal Returns)

Our Saturday long read linkfest.  (Abnormal Returns)

Top clicks this week on Abnormal Returns.  (Abnormal Returns)

Mixed media

How traders can social media to “create your own herd.”  (Points and Figures)

Why is it that we are so willing to engage in “willful blindness“?  (NYTimes)

Expertise as a double-edged sword.  (The Atlantic)

Frances Woolley, “Blogging is the punk rock of academic discourse. Anybody can do it. But nobody has to listen.”  (Worthwhile Canadian Initiative via @interfluidity)

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