Guess What - More New Lows. What Else Is Out There?

I’m getting a little tired of focusing on the S&P 500 (^GSPC) … it’s depressing me.

Another day.  Another low.  Futures are down again as I write.

I am guilty of not providing other alternatives to losing your money in stocks.  There are many financial markets out there and when stocks are not working, you have to look elsewhere.  Or stay on the sideline.

But what fun is that?

Bonds - the iShares Barclays 20+year Treasury Bond ETF (TLT) has not been the winner that I thought it would be, but it hasn’t broken support and headed lower either; it is at the top of its trading range right now, so be careful … this went higher with the market at the end of last year, so it’s not necessarily a contrarian stocks play per-se, but it’s not in complete free fall either.

Currencies - The yen is still falling and I think it has more to go … not too late to make money here.

The Euro is at support here.  Be careful of headline risk out of Eastern Europe.  If countries begin defaulting on debt, the Euro will tank …

… which will be good news for the Dollar.  The PowerShares DB US Dollar Index Bulish ETF (UUP) is at resistance here, so it might not be the best time to initiate a position, but again, it’s better than hoping the S&P bounces.

Commodities - the only one I see working here (granted on a quick review) is Gold and other precious metals.  Too many of the others are tied to consumption, which is down because we are in a recession.  It might also be worth noting that I read my first headlines with the “D” word … Cramer mentioned it this week wearing a jacket (on the Today show) saying it might be a “garden variety depression” … which certainly won’t be good news for anybody.  Here’s the SPDR Gold ETF (GLD) chart … perhaps it’s pulled back enough we could buy here.

Stocks - I don’t know how to not talk about the stock market … but we’re in a bad trading range here - bouncing between the bottom bollinger band and the 10 day moving average.  It’s not even technically oversold.  The VIX (^VIX) hasn’t spiked yet.  It’s a train wreck that I’ve taken too long to realize.  No more rose colored glasses.  Just stay away.  Not from the chart tho - click for a larger view!

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