Wednesday, March 27, 2013

Uncertain markets waver as Q1 closes

Dow fell 33, advancers just ahead of decliners & NAZ was up 4.  The Financial Index was off 1+ to the 244s.  The MLP index retreated 1+ to 450 & the REIT index added pocket change in the 285s for a new multi year high.  Junk bond funds were mixed & Treasuries found buyers as the yield on the 10 year Treasury is near a 10 week low.  Oil had a fractional gain & gold was up 9 to 1605.

AMJ (Alerian MLP Index tracking fund)

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There was selling at the opening, taking the Dow down over 100 on nervousness about the Cyprus debt mess.  Buyers returned & limited the damage to almost break even (at record levels).  Tomorrow anything is possible between end of Q1 evening positions & fiscal messes in Europe & the US.  In addition, trading is light.  I went to a meeting with fund managers for high yield funds.  As usual, they were optimistic about junk bonds.  But they are favoring higher quality debt versus lower rated bonds (CCC & even lower).  Dow is up an enormous 1.4K in Q1, one of its best gains ever.  But after my meeting today, there is a plenty of anxiety in the markets which continue to be overbought.

Dow Jones Industrials

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