Why no sell off?

Discussion in 'Trading' started by kashirin, Jul 6, 2007.

  1. Bonds interest is 5.19%
    0.15% up in 2 days

    2 weeks ago it was sell off 200 points
    why not today?
     
  2. Bob111

    Bob111

    maybe cause you short? :)
     
  3. bh_prop

    bh_prop

    Because last night a new thread about today being black friday popped up
     
  4. 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.
     
  5. 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%.
     
  6. 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
     
  7. Good luck trading against the markets.
     
  8. yeah good luck , bears like me are getting slaughtered . for nearly a year now . anyone no a good bankruptcy lawyer ?
    toothless jake the loser
     
  9. Markets are at midMay levels
    if you buy and hold you lost since that
    I sold straddles and made a nice profit
     
  10. 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.
     
    #10     Jul 6, 2007