The return of weekend reading.

a) Bitcoin derivatives. Bloomberg (HERE) reports on efforts to create a futures and/or options exchange that will offer hedges exclusively in bitcoin currency. The CFTC is mulling ways to figure out how to regulate the Wild West.

b) Early morning insomnia takes me to THIS series of posts on a new site that takes investor biases as a given and suggests ways to overcome them. Curiously, they report that smart people are even more prone to such biased behavior.

c) Reminiscent of the Greenspan briefcase indicator comes THIS chart of the Fed laugh indicator and how it correlates with housing prices.

d) As the market flirts with new highs (far fewer invidivual stocks, or even sectors are participating), non-believers may be wondering what if anything to get bearish about. Probably not the strong stuff (though GLD/GDX appears to be pausing, momos are faltering), but how about the weak stuff. Retail, EEM, things that have moved up to resistance lines. Rotation and squeezes can of course take them higher (witness the $10 pop in SOHU Friday on no visible news). This time is reminiscent of the giddy phase of Spring 2000, when everything looked awesome. Back then, the options in my trading portfolio would show 10-20% pops on a daily basis and it was hard to sit on ones hand or worse stop looking at the market altogether. A timely exit in April kept me whole. I am determined to improve on that experience.

e) The ubiquitous Buffett annual letter (HERE).


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