I've been drawing channel lines in choppy action a lot lately and protecting myself from bad entries that look sensible in more volatile price action. Draw the channel lines as price stepped downward from 1:50pm ET high and you'll see that 1235.25 was the buy zone and 1237.25 the sell zone. Now it's finally breaking out of the channel, upside, which makes sense if you construe the long channel as a bull flaggish formation.
I understand what he is saying, I don't think he articulated it that well, the issue to me here is that the 30 year bond is going up, this is bad for housing and not what the fed intended. We know that bonds and stocks are correlated, when and if the shit hits the fan the yields will drop and bond prices will surge. I think that if you are going to talk about these correlations you should break them down into simple terms. The global correlation issue has gotten much smarter traders than me in lots of trouble. Look at how Simons fund was able to return to normal and make money while Citadel and other hedge funds were still getting killed a few years ago. http://online.wsj.com/article/SB10001424052748704073804576023484185804102.html?mod=googlenews_wsj http://www.ritholtz.com/blog/2010/11/the-end-of-stock-bond-correlation/