Diary of a Financier

Top Newsstuffs (June 16-22)

In Bookshelf on Sun 22 Jun 2014 at 06:17

Not a lot of links this weekend.  Despite the FOMC meeting, I didn’t think much was news-worthy…

Solar power’s big hurdle: Tax credit extension limited in Congress | Barron’s
Launched in 2006, a “Solar Investment Tax Credit” (ITC) project installations will fall from 30% to 10% in 1/2017.
Solar industry wants it extended until 2025, but Utilities oppose it, and Congress doesn’t seem to have the bandwidth to address it before expiration.
#Clean tech #Alternative/renewable energy $TAN $XLU

Rail traffic weekly: Incremental gains | Association of American Railroads (AAR)
Weekly traffic: +4.1% y/y
Growth ytd: unch @ +4.4%
Carload groups: 9 of 10 posted gains, including grain +22.3%, petroleum +13.2, metals +8.4; coal -6.2
[10th consecutive week prolongs an unheralded rally.]
#Bullish! $DBA $XLE $USO $XME $KOL

Investor sentiment survey: Volatile swing back down to norms (June 18, 2014) | American Association of Individual Investors (AAII)
Respondents’ expectation for equity performance over next 6 months (through 12/2014):
– Bullish: -9.5pp w/w @ 35.2% vs 39.0 historical avg & 45 extreme high
– Bearish: +2.9pp @ 24.1 vs 30.5 LT avg & 25 extreme low; 18.5 postcrisis low in January
Neutral: +6.6pp @ 40.7 vs 30.5 LT average; remains 1σ above mean
– Bull/Bear ratio: @ 1.46 vs 1.28 avg
[Neutral cohort swells again in an overall mean reversion after everything was at extremes last week; a good example of retail investors being fickle, as always on display in this high-frequency, volatile, noisy indicator.]
#Neutral #Noise

–Romeo

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