Steve, I think you have a good point there. The growth group NAZ/NDX are sliding lower and lower while the cyclicals continue to hold the market up. It should be the other way around, if the economy was growing as they claim.
Today was absolutely dead in bond land, no one really did anything, just a lot of noise within our range, the flattening on the open was interesting, with the bond up about 8 ticks and the ten year up 1 tick or so, and was short-lived. The mortgage guys rolled some calls very late in the day, Countrywide got out of 20,000 July 107's and rolled into 106 10,000 times, while Wells Fargo bought 15,000 Sep 107 calls. The big mortgage put buying of previous weeks has begun to die down (actually nothing from them since mid last week) and turn into call buying. Maybe a short-term bottom here from their perspective. It was dead all afternoon, then Goldman, as always, sold 3000 five years out of nowhere. There have been some very nice sized orders in 5yr futures (mostly screen, but some in pit too) as of late.
Yeah and notice how strong the negative correlation between S&P and bonds have grown since the start of 2006, at least on weekly charts..