Update: TED Spread on Watch for Breakout
- Posted by DynamicHedge
- on December 29th, 2011
While the market has rallied off the lows, the TED spread continues to march higher. I was monitoring this indicator of bank health and counter party trust at the end of November for a breakout above the 2010 highs. It has officially broken out.
I would not ignore this key metric of credit health. January is looking like a month to play defense until proven otherwise.
Here’s the 3-month chart. Can you spot a trend?:
Here’s the breakout (3-year chart):
Disclaimer: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please click here for a full disclaimer.
DynamicHedge is an equities, futures and derivatives trader based on the West Coast. He runs a long/short opportunistic relative-value strategy within a proprietary trading group. More
- Macro that matters
- Is your brain a fortress or a wild bus ride?
- Sector Momentum Visualized
- Simple rule to improve financial decisions
- Quick observations on the 200-day moving average
- Momentum Mechanism
- How does Apple trade after earnings?
- 70 days of suffering in WalMart
- April is very bullish in a weird way
- Representativeness Bias: Easy Classifications