The reasoning is quite simple: Higher bond yields = demand for capital is high from businesses and consumers = economy running full steam ahead = extremely bullish = higher prices in equity indexes to come = more $$$ for all longs Should yields go down then it goes like this: Higher bond prices = lower capital costs for businesses = more cheap money for LBOs and PE = higher prices in equity indexes to come You see no matter what the news is, the markets go whatever way the highest amount of capital pushes it towards. Forget the news noise. Look what the markets do.
We are approaching a critical resistance level on SPX. If it doesn't break then I expect 30 point drop within the week, accompanied by 10-yr yields dropping back below 5%.
I don't agree. I think Higher bond yields= Chinese don't agree for yields lower than inflation and buy stocks= Fed will have to raise=Chinese will buy bonds again= longs will loose if they don't take profits
yeah good luck , bears like me are getting slaughtered . for nearly a year now . anyone no a good bankruptcy lawyer ? toothless jake the loser
Markets are at midMay levels if you buy and hold you lost since that I sold straddles and made a nice profit
Summer vacations Altough markets went up, they did so on very thin volume. Next week markets may go down, they are a bit overextended now.