Over the last few days, the whole world has become aware of the rising in rates. What's interesting, is that a close below last week's low in TLT will set up a bullish divergence on the daily chart.
Are stocks and bonds pulling a euro-step on allocators?
What is a euro step? Watch James Harden break it down. In essence, don't be that guy on the Lakers who bit on the first move.
If this is the bottom in bonds, that really throws a wrench in theses.
This is especially important considering the critical point in time we've reached in the stock-bond ratio as first mentioned in the Rotation Report. It's entirely possible we see a shift from stocks into bonds here.
Of course the opposite is possible as well, but we'll respect that bullish divergence until it's not respected.
No comments:
Post a Comment