Friday, September 25, 2009

Bonds Break High



It was just yesterday I wrote about this market and today we saw the bonds (TLT) make a 4 month high. I think this may be the beginning of an uptrend due to the fact that this market has been consolidating for the past few months. Lets see what happens.

5 comments:

Anonymous said...

i agree, you gotta buy. just gotta be careful of a bull trap and would be nice to see some funds flow out of stocks for more tinder.

Ishkbob said...

Kevin write some more posts man, lol. It's been too many days :)

mingworld said...

Hi Kevin,

What's the implication for stock market when bonds are going higher?

Thanks

Ming

Anonymous said...

mingworld,

2 things...

1) means money is looking for a safe haven and stock market has potential to go lower. I would never however place a trade just based on falling yields.

2) PMI and ISM are utter trainwrecks this week. Means all that topline growth companies thought they would see in q3 are essentially non-existent. Furthermore, proves that all positive company commentary up until this point is based purely on inv restock. Bonds are telling you they dont believe in the fundamentals of the rally.

Deflation anyone?

Rachel said...

Decline in general price levels, often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending.

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