Signs of a turn in the bond market.  (Bespoke, Money Game also DailyFinance)

Investor sentiment is all over the place.  (Pragmatic Capitalism)

How important is the VIX in the sentiment indicator toolbox?  (The Macro Trader)

Barry has been putting some money to work.  (Big Picture)

The PowerShares DB US Dollar Bullish Fund (UUP) is setting up for a “death cross.”  (WSJ)

How far are the regulators willing to go to slow down ever more frenetic trading?  (AR Screencast)

The coming quagmire that is retail currency trading.  (The Reformed Broker)

Bella, “As you gain experience your trading rules should develop more nuance.”  (SMB Training)

Patience usually wins in the stock market.  (Charts and Coffee via TRB)

On the danger of confirmation bias.  (Daily Options Report)

How badly would a ’soda tax’ hurt Coke (KO) and Pepsi (PEP)?  (YCharts Blog)

The SEC is taking a closer look at how hedge fund of funds do business.  (WSJ)

Is the SEC ready to bring charges related to the failure of Lehman Bros.?  (naked capitalism)

What are the consequences of of the growth in index-linked investing?  (SSRN)

On the fallacy that the stock market follows GDP.  (Money Game)

No recession in rail traffic.  (ValuePlays, Pragmatic Capitalism, Street Sweep also Money Game)

When everyone thinks the economy is “broken” it is likely on the cusp of recovery.  (Money Game)

Things are not as bad as Bremmer and Roubini say.  (Free exchange, FT Alphaville)

Austan Goolsbee steps up to head the CEA.  (WSJ, Real Time Economics, Free exchange, Points and Figures)

Switzerland is once again the safe haven of Europe.  (FT Alphaville)

What happened to that big revaluation of the renminbi?  (Lex)

The Harvard endowment starts digging out of its hole.  (WSJ, NYTimes, Harvard also Clusterstock)

Shale gas is not a panacea.  (Gregor Macdonald)

Tablets are taking share from laptops.  Discuss.  (Lex)

Will iPhones soon take over for Blackberries on Wall Street?  (Bloomberg)

Is college still worth the money?  (WashingtonPost)

There are now a number of ways to follow Abnormal Returns including:  @ARupdates, free e-mails:  AR Classic,  AR Energy, AR Options, the Abnormal Returns widget, our daily screencasts, and Abnormal Returns TV.

One can argue that these are all inevitable, and potentially useful, market extensions.  However for many the Flash Crash was the first major sign that the market’s structure is badly in need of a fix.  In today’s screencast we wonder just how far the SEC is willing to go to rein in recent developments in equity (and options) trading.

Posts mentioned in the above screencast:

Some traders now only trade the open and the close.  (WSJ, Felix Salmon, Zero Hedge, Dealbreaker)

Here come one-day options.  (Bloomberg, Daily Options Report)

What can be done to slow high-frequency trading?  (FT)

Daily chart of CBOE Holdings (CBOE).  (Finviz)

Comparing the Dow dividend yields to Treasury bonds.  (Ticker Sense)

Why are big tech stocks trading at such low valuations?  (Tech Trader Daily, research puzzle)

“Microsoft (MSFT) is darn cheap – even breathtakingly cheap.  But boy is this a dramatically weakened business.”  (Bronte Capital earlier AR Screencast)

Bond issuance (investment grade and junk) are on a tear.  (WSJ, Lex)

August hedge fund performance.  (WSJ, Reuters)

Is gold poised to break out or is it overbought?  (Bespoke, Pragmatic Capitalism)

The VIX futures curve is in serious contango.  (VIX and More also OptionPit, Bloomberg)

Is tail risk protection now a crowded trade?  (Humble Student)

The “stock replacement strategy” goes mainstream.  (WSJ)

Have the big box retailers recognized the new consumer normal?  (The Burning Platform also YCharts Blog)

Consumer sentiment aside, restaurant stocks are on fire.  (Bespoke)

Reading insider buy/sell data is tricky.  (Reuters)

The financial crisis has put various investment strategies on a collision course.  (All About Alpha)

The September ETF Deathwatch is up.  (Invest With An Edge also IndexUniverse)

Some new ETF ideas.  (Random Roger)

Vanguard launches its S&P 500 ETF (VOO).  (IndexUniverse)

The ALPS Alerian MLP ETF (AMLP) has already attracted decent volume.  (TheStreet)

Has lumber bottomed?  (MarketBeat)

Asset allocation is not like poker.  You don’t have to go “all in.”  (A Dash of Insight)

“I really hate to disappoint but the secret to making money in the stock market is THERE IS NO SECRET!”  (The Crosshairs Blog)

The best trading method:  specialist vs. generalist?  (StockTwitsU)

International bond markets are becoming more integrated.  (SSRN)

The Rosenberg Indicator.  (Justin Paterno)

Political aggregators make tracking polls easier, but does it have any bearing on investing?  (AR Screencast)

Initial claims for unemployment drop…a little bit.  (Calculated Risk, Pragmatic Capitalism)

Personal consumption expenditures are growing, but not enough to sustain a robust economic recovery.  (Pragmatic Capitalism)

Will the latest economic policy proposals do any good?  (naked capitalism, Economix, Free exchange)

Who wins, i.e. gets paid, when investment tax credits get enacted?  (Rortybomb)

What are food prices telling us about consumer’s capacity to fund housing costs?  (NetNet)

Stop feeling so miserable, the Real Misery index has dropped.  (Huffington Post)

Two signs the economy remains in recovery mode.  (ValuePlays also Money Game, dshort)

Is Africa poised for “steady, rapid growth”?  (Free exchange)

What is behind the rally in Thailand?  (Marketwatch)

Greece is not going to turn itself around.  (Felix Salmon)

No wonder Switzerland is rocking.  (Business Insider)

Putting the rise of emerging markets into perspective.  (The Capital Spectator)

In the “two speed economy” look to emerging markets for value creation.  (beyondbrics)

Looking at some really long-term economic cycles.  (Economist)

Thinking about how government plays an important role in relative prices.  (Data Diary)

The must-read article from Bremmer and Roubini I haven’t read yet.  (Institutional Investor also Felix Salmon, Crossing Wall Street)

Greg Ip has a new “little book” on understanding (macro)economics.  (Greg Ip)

Why did Apple (AAPL) reverse its position on Adobe (ADBE) Flash?  (Apple 2.0 also Bloomberg, Bits, Daring Fireball)

How Apple plays the pricing game.  (Farnam Street)

Twitter is a game…there should be rewards.  (Howard Lindzon also GigaOM)

How CEO testosterone levels affect M&A activity.  (John Gapper, Simoleon Sense)

On the (perilous) future of reading.  (The Frontal Cortex)

How bad is Wall Street 2:  Money Never Sleeps?  Ask Bess.  (Dealbreaker)

There are now a number of ways to follow Abnormal Returns including:  @ARupdates, free e-mails:  AR Classic,  AR Energy, AR Options, the Abnormal Returns widget, our daily screencasts, and Abnormal Returns TV.

Posts mentioned in the above screencast:

Lobbyists prepare for a Republican surge in November.  (NYTimes)

Democratic prospects have been trending down for awhile.  (Bespoke)

Prospects for a Republican takeover of the Senate.  (FiveThirtyEight)

Political poll aggregation.  (Real Clear Politics)

A real-money election market.  (Iowa Election Market)

Political prediction markets.  (Intrade)

Never let politics interfere with making money.  (A Dash of Insight)

Are dividends now cool?  (Crossing Wall Street)

Where the Obama stock market stands relative to other administrations.  (Bespoke)

The good (gold) and bad (everything else) of John Paulson’s August performance.  (Clusterstock, FT)

Why some investors continue to heart gold.  (FT Alphaville, Street Sweep)

Active fund managers are frustrated by market correlations.  Maybe they should be playing a different game?  (AR Screencast)

Capitulation in the bond market.  (WSJ)

Bond math is pretty simple.  (Bucks Blog)

Goldman Sachs (GS) has a muni bond it wants to sell you.  (WSJ)

Why Wall Street loves Mark Hurd.  (Fortune, Deal Journal)

What stocks would gain from deflation?  (Marketwatch, Crossing Wall Street)

In search of a growth story in the cloud.  (The Reformed Broker)

The puzzling success of trend-following investment strategies.  (Gavyn Davies)

David Merkel, “Markets aren’t magic.  They can only deliver what the real economy does.”  (Aleph Blog)

“It doesn’t hurt to be comprehensive in your knowledge and targeted in your approach.”  (Milktrader)

Nick Gogerty, “Mutual Fund managers get paid extremely well.  Mutual Fund managers suck.”  (Designing Better Futures)

Jeff Miller, “We celebrate the results of the recently-successful, perhaps being fooled by randomness.”  (A Dash of Insight)

Do investors really want absolute returns?  (MarketSci Blog)

What high frequency data can do for risk management.  (FT Alphaville)

Why aren’t mortgage rates and housing prices more closely related?  (Economix, EconomPic Data)

Where does housing rank in terms of the problems with the economy?  (NYTimes also Big Picture, Modeled Behavior, Felix Salmon)

TIPS-derived inflation expectations continue to fall.  (Macro Musings)

Rail traffic continues to bounce back.  (ValuePlays)

Taxes are not a reason for America’s growing income disparity.  (Atlantic Business)

Stimulus won’t fix the structural unemployment problem.  (WashingtonPost)

Anglo Irish Bank goes the good bank/bad bank route.  (WSJ, Bloomberg, FT Alphaville)

The Swiss franc as a safe haven from the rest of Europe.  (The Reformed Broker)

The Thai baht is on fire.  (beyondbrics)

Contango is back in the WTI crude futures.  (FT Alphaville)

The new normal in oil and natural gas prices.  (Donald Marron)

Could oil prices fall further?  (Fortune)

Ping is likely to grow beyond music.  (Daring Fireball also GigaOM)

Interesting interview with Satyajit Das.  (Planet Money)

Part 2 of an interview with Justin Fox.  (Wall St. Cheat Sheet)

Stock spammers are not stupid.  (The Psy-Fi Blog)

Seven things to do to improve.  (Kirk Report)

How junk food hijacks your brain.  (NewScientist)

Why alcohol is good for you.  (The Frontal Cortex)

There are now a number of ways to follow Abnormal Returns including:  @ARupdates, free e-mails:  AR Classic,  AR Energy, AR Options, the Abnormal Returns widget, our daily screencasts, and Abnormal Returns TV.

That means that investors in search of an edge need to focus on a different time horizon.  With the shortest time horizons dominated by machines the only choice is to focus on the longer term.  Over long horizons differences in quality (and earnings) are eventually magnified.  Those measures are eventually reflected in stocks prices.  This relative outperformance may emerge through drift (or dribs and drabs) but they do eventually see the light of day.  In today’s screencast we look at how value wins out in the end.

Posts mentioned in the above screencast:

Stockpickers are frustrated by the current environment.  (Bloomberg, Fund My Mutual Fund)

Quality wins out.  It just takes some time.  (Crossing Wall Street)

Screencast on patience and the value of dividends.  (Abnormal Returns)

The forthcoming golden age of stockpicking.  (Abnormal Returns)

By one measure dividend yields are as attractive as they have been in 15 years.  (Bloomberg also Minyanville)

Everybody talks their book, even Michael Burry.  (AR Screencast)

Edward Alberts thinks the equity markets are in denial.  (FT Alphaville)

Six Autumn outliers.  (The Reformed Broker)

Putting the last few months of the S&P 500 into perspective.  (VIX and More)

Janus (JNS) is joining the active ETF fray.  (IndexUniverse)

Is Wall Street research a “valuable, public good”?  (Big Picture)

What the “ultimate stock pickers” are buying and selling.  (Morningstar)

Great traders “archive their thoughts.”  (StockTwitsU)

Have we scared young investors out of the stock market?  (CNNMoney)

A fall biotech preview.  (TheStreet)

Warren Buffett on holding cash.  (Market Folly)

Larry Ellison makes a big bet on Mark Hurd.  (NYTimes)

On the rise of Evercore Partners (EVR) to the pinnacle of Wall Street.  (Fortune)

Apportioning blame for the failure of Lehman Brothers.  (naked capitalism)

Time Magazine as a contrarian indicator on housing.  (Jeff Matthews)

Stimulus:  The Sequel is coming to a theater near you.  (WSJ, Money Game, Pragmatic Capitalism, Business Insider)

An economic tale of three states.  (Economix)

Ireland is having a hard time making a case for its own fiscal situation.  (Money Game also Calculated Risk, Street Sweep)

If Europe is dividing into North and South, where is their Mason-Dixon line?  (Slate)

Why a strong Yen is good for Japan.  (Curious Capitalist)

Michael Lewis on how Greece bankrupted itself.  (VanityFair, ibid)

Mexico to join the Citigroup’s World Government Bond Index.  (beyondbrics)

What Apple (AAPL) investors should look out for.  (Reuters Breakingviews)

How to think about economics.  (The Capital Spectator)

More on the what being a CEO means meme.  (TechCrunch, Howard Lindzon, A VC)

The UCLA Anderson School of Management plans to give up public funding.  (FT)

More research into the relationship between income and happiness.  (NewScientist)

There are now a number of ways to follow Abnormal Returns including:  @ARupdates, free e-mails:  AR Classic,  AR Energy, AR Options, the Abnormal Returns widget, our daily screencasts, and Abnormal Returns TV.

Michael Burry, an investor who figured prominently in Michael Lewis’ book The Big Short, is interviewed in which he gives his opinion on a number of different investments.  What investors need to understand is that Burry has already made his millions and likely is investing with a different mindset than your own.  So whenever a prominent investor is talking investments recognize how your situation differs from theirs and how it might affect their advice.  In today’s screencast we look at this phenomenon.

Posts mentioned in the above screencast:

Michael Burry is buying farmland and gold.  (Bloomberg, Clusterstock, Street Capitalist)

Is obsession necessary for success in the financial markets?  (Abnormal Returns)

Daily chart of the SPDR Gold Shares ETF (GLD).  (Finviz)

Michael Lewis is back with a piece on the near-certain bankruptcy of Greece.  (Vanity Fair)

Time to let home prices fall to their natural level.  (Big Picture, NYTimes , Business Insider, Free exchange also Calculated Risk)

A sustained reversal in bond yields is not a done deal.   (Pragmatic Capitalism)

A look back and a look ahead at the coming week.  (A Dash of Insight)

What John Paulson is up to.  (Zero Hedge)

How do value REITs in the face of such low Treasury yields?  (Lex)

How past equity market returns affect currency returns.  (Alea)

On the chances of a double-dip.  (FiveThirtyEight)

Why aren’t more people calling for expanded infrastructure spending?  (Free exchange)

India is trading at a premium to other emerging markets.  (beyondbrics)

More talk on the Petrobras (PBR) share sale.  (FT)

Gregor Macdonald, “The global coffee market, therefore, offers both traders and macroeconomic observers a portal through which to see pressures on food supplies more generally, and their economic effects.”  (ST Macro Weekly)

Reasons to be bullish on coal prices.  (Lex)

Don’t write off Ping just yet.  Apple (AAPL) has the customers.  (Howard Lindzon)

The costs of higher education have increased.  Is it still worth it?  (Points and Figures)

There are now a number of ways to follow Abnormal Returns including:  @ARupdates, free e-mails:  AR Classic,  AR Energy, AR Options, the Abnormal Returns widget, our daily screencasts, and Abnormal Returns TV.

Josh Brown, “Stocks need strength in other stocks at this junction.”  (The Reformed Broker)

Bearish sentiment isn’t always a bullish signal.  (The Technical Take)

Equity sentiment at week-end.  (Trader’s Narrative)

A look at ICI mutual fund cash stats.  (StockCharts Blog via UpsideTrader)

2010 country stock market performance.  (Bespoke also Carpe Diem)

Institutions have begun to embrace the use of options.  (Barron’s)

How good a job to covered-call closed-end funds at taming volatility?  (Morningstar)

Managed futures mutual funds are having a rough time of it.  (WSJ)

Petrobras (PBR) is planning a huge share sale.  (WSJ)

Goldman Sachs (GS) to shut its proprietary trading desk.  (Bloomberg, WSJ, FT Alphaville, Clusterstock)

Do financial statements tell “the truth”?  (Interfluidity)

How much worse could the US economy get?  (Atlantic Business)

Some alternative takes on the employment situation.  (Econbrowser also Calculated Risk, Pragmatic Capitalism)

What the rising number of “significant” economic indicators means for the markets.  (Ticker Sense)

Whatever happened to the European sovereign debt crisis?  (A Dash of Insight)

“Economics is not a science. Indeed, as it stands, it’s not even a social science, it’s more akin to a pseudo-social science.”  (The Psy-Fi Blog)

Search on mobile devices is going to be different than search on desktops.  (SAI)

Can Ping be saved?  (Apple 2.0, A VC)

Robin Nagle, “Every single thing you see is future trash. Everything.”  (The Believer via Daily Dish also DailyFinance)

There are now a number of ways to follow Abnormal Returns including:  @ARupdates, free e-mails:  AR Classic,  AR Energy, AR Options, the Abnormal Returns widget, our daily screencasts, and Abnormal Returns TV.