Today, the market is euphoric about S&P 500's close above 1,100. The bulls are jubilant.
In spite of this, I am looking at the chart of US 10 year note yield and noticing the yield dropped today. Same thing for the 30 year bond yield. That translates into the 10 Year Note (or the Bonds) actually going up!
Money is moving into Bonds while Equities are going up. This is abnormal. You can dig into today's speech given by the Fed Chairman in search of clues. I for one, is more concerned with the outcome than the cause.
I am hanging my hat on the fact that Bonds moved higher today. As a reminder to myself, Bonds lead Equities!
I get the message.
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