TODAYS DOINGS
The question that I would like to know is, can the markets rally with the SMH making a 52 week low and the MSH and QQQQ acting so poorly?
Are the markets speaking loudly about a rotation to healthcare and other defensive areas?
And what about this fact from David Rosenberg at MER via my friends at Minyanville:
"The Fed funds rate is presently at 5.25%. Meanwhile, the entire yield curve is now trading below the Fed funds rate. - 2-year: 5.17%- 5-year: 5.12%- 10-year: 5.15%- 30-year: 5.19%
According to stats from Merrill's David Rosenberg, this has only happened four times in the past 25 years:- March 2000, August 1998, January 1989, January 1982.
In each instance, the next six months saw a significant rally in bonds, a widening of corporate spreads, an average 6% decline in commodity prices and underperformance by small cap stocks."
Oh, and congrats to President W on the hat trick, Treasury Secretary #3.
posted by DAVID at
11:39 AM
2 Comments:
interesting. this confirms my bullish bias on long term us debt. otm nov.dec. flies or ratio spreads may do the trick to game this one.
or call backspreads, not ratio's. Or, just go long the underlyings here. sorry for the rant.
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