Pending Treasury Exit?

There have been at least as many betting against the Treasury bull as there were betting against the natural gas bear.  These trades leave many a bodies in their wake but eventually the corpses are proven right.

Are we seeing the start of capital coming out of treasuries?  Since it had a blow-off top a couple days ago it looks very soft.  If $TLT trades below the green shaded area I will take it as a sign that money is rotating out of the safe harbor of Treasuries and into the rough seas of equities.  This could move the market and the $SPX MUCH higher.  On the whole, investors hate stocks and love bonds (of all varieties: MBS, Corporate, High Yield, Treasuries, etc).  How long it lasts is anyone’s guess.

If treasuries keep rising along with equities it’ll be a case of whoever blinks first.  Something will have to give.

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.

blog comments powered by Disqus
Dynamichedge Blog