Quote of the day
Derek Hernquist, “This has been an epic rally of huge mental resistance but little price resistance, nicely revealing biases among its players. The past 6 months don’t matter; a trader now needs to handle what lies ahead as we drain the excess.” (Derek Hernquist)
Chart of the day
EWW Total Return Price data by YCharts
Investors have soured on Mexico of late. (beyondbrics)
Markets
Yes Virginia, the stock market can go down. (UpsideTrader)
Equity market sentiment is excessive. (The Short Side of Long)
Take notice, we are in an altogether different correlation environment. (Market Anthropology)
Coffee prices are at multi-year lows. (Quartz)
Strategy
Five things you need to know about investing. (Motley Fool via Big Picture)
Seven things to know as a trader. (Joe Fahmy)
Notes from the Pimco Investment Summit with Mohamed El-Erian. (The Reformed Broker)
What happens to yield-sensitive, defensive sectors in the face of rising rates. (Jason Zweig)
Stock splits proxy for the momentum effect. (Aleph Blog)
Companies
Why Sprint ($S) should pass on Charlie Ergen’s offer for the company. (Bronte Capital)
Winning means different things to the big three smartphone players. (Benedict Evans via @techmeme)
Hedge funds
Most hedge funds aren’t worth investing in. (Leigh Drogen)
You really don’t need a hedge fund in your mutual fund. (Barry Ritholtz)
Economy
On the challenges of Fed communications in a QE world. (WSJ, Free exchange)
Five reasons for optimism. (NYTimes via Marginal Revolution)
Rail traffic is sluggish. (Pragmatic Capitalism)
A look back at the economic week that was. (Big Picture)
The economic schedule for the coming week. (Calculated Risk)
Earlier on Abnormal Returns
What you may have missed in our Saturday long form linkfest. (Abnormal Returns)
Top clicks this week on the site. (Abnormal Returns)
Mixed media
Why do people continue to call blog posts a ‘blog’? (Slate)
You can’t hide your personality on Twitter for long. (Economist)
Why the Internet is so addictive. (Scientific American)
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