Wall Street took somewhat of a breather this week as mixed economic reports had investors curbing recent bullish momentum. The National Federation of Independent Business reported that its small-business optimism index topped analysts expectations for the month of February; however, the reading also showed that more business owners were reporting declining sales. U.S. retail sales, however, came in better than expected, jumping 1.1% in February [see 3 Economic Charts Bears Love To Ignore].
Below we outline seven insightful articles circulating around the financial space this week:
- Using Puts vs. Calls For Calendar Spreads at Terry’s Tips
Technical trading can sometimes seem like a daunting task, as there are often multiple strategies one can take to execute a certain trade. In this article, Dr. Terry F. Allen outlines two different strategies for calendar spreads.
- Can the Fed Burst the Next Bubble Before It’s Too Late? at The Fiscal Times
Though some attribute the recent rise in the stock market to the Fed’s massive stimulus measures, some continue to scrutinize the central bank’s moves. In this piece, Mark Thoma discusses whether or not the Fed is now in the position to effectively respond to signs of overheating in asset markets.
- Theory of Financial Crisis at VOX
For all of you aspiring academics, this piece is quite insightful. Professors Itay Goldstein and Assaf Razin explain the three major types of economic crises: banking crises and panics, credit frictions and market freezes, and currency crises.
- Where Are The Overbought Conditions? at All Star Charts
As bullish momentum continues to sweep across Wall Street, investors have cheered on major U.S. indexes as they rally into uncharted territory. In this article, however, J.C. Parets discusses his technical analysis of the rally, highlighting whether or not he thinks the major averages have been hitting overbought conditions.
- Dow Reaches Eight Straight Up Days: Here’s What History Suggests Will Follow at Pretzel Charts
For all of you wondering what exactly happens next after the Dow hit historic levels this week, perhaps a look at blue-chip’s history may give you a clue. In this article, Jason Haver explains what he thinks is up next for the Dow.
- Bond Markets: Skepticism, Short Squeeze and Selectivity at Advisor Perspectives
The phenomenon of a “great rotation” has gotten significant media attention in recent months. In this video, John Pattullo explains why he is skeptical of a “great rotation” given the weak economic background.
- Total Returns for ETFs at Mebane Faber Research
In this short but highly insightful piece, Mebane Faber illustrates how ETFs have generated significant real returns over the years.
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Disclosure: No positions at time of writing.