thetechnicaltake's blog

There probably is a lot of back slapping going around at the Fed and Treasury Department these days as the markets have risen on a flood of liquidity.

This comes from the Department of I Should Have Known.

To attach any significance to the market's current strength is wrong.

The growing divergence between lower 10 year Treasury yields and higher equity prices continues.

I still think the best course of action is not to fight the tape, and of course, don't become fodder for the bulls.

There is little follow through on either side of the equity markets. Outsize bets in either direction are not warranted.

Gold and silver are outperforming a basket of currencies.

This should be another time saving moment for our readers as we measure several levels of investor sentiment with one unique indicator.

Long term Treasury yields have not discounted the economic recovery, and in fact, yields on the 10 year Treasury have a high likelihood of heading lower. Equities have discounted a strong economic recovery. This divergence won't persist for long.

To spare you the trouble of having to waste your time reading and to spare me the embarrassment, there will be no comments this week. Just graphs.

The Dollar Index continues to trend lower, and it is at real risk of seeing accelerating losses.

Whether the perfect trifecta becomes the perfect storm (again) for investors is yet to be determined.

The hot and cold market lives on as prices ping pong from one extreme to another. Are investors being taken for another ride?