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Bonds ain't buying The Buy-The-F##king-Paris-Attack-Dip rally in stocks...
and a bonus "question your stock buying panic" chart...
Charts: Bloomberg
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Bond traders apparently have decided to go Kool-ade free........
Check out the H&S topping pattern on the NYSE
http://www.goldsqueeze.com/home/nyse-composite-head-and-shoulders-top-in...
"Gentlemen prefer bonds" -- Andrew Mellon
But tomorrow is the Monthly option expiration which means the SPY/QQQ will rally!
Price of bonds moves inverse to yield, so, recently, The Buy-The-F##king-Paris-Attack-Dip rally in bonds is tracking The Buy-The-F##king-Paris-Attack-Dip rally in stocks, almost exactly.
The whole risk:price correlation in fixed income has been destroyed by the lunatic central bankers. Bond price is now more a function of the bonds value as collateral, rather than risk of repayment.
The bond vigilantes have all been drowned in central bank liquidity.
Bonds and stawks are supposed to move up with usd. Vix also.
#itsdifferentthistime #thankyellen
Stocks often move in the opposite direction of the currency they are priced in. As the value of each reserve note decreases due to increased suppy (printing), it take more and more reserve notes to purchase everything, even stocks, so the stock prices increase as the value of the currency decreases (inflation).
I had my sarc on, but what happens when they all do it at the same time? JPY/EUR/USD all going full steam. Got SDR?
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A little divergence never hurt anything.
Until it does
I was worried because the Dow was down a few points in earlier trading.
Now it's up nicely so I'm ok and all is well and everything is AWESOME!
All this means is that the stupid bond traders are no longer "The Smartest Guys In The Room"....and they haven't been for the past seven years!
It's the buy everything before it's too late rally. Santa Claus is coming to town.
LOL!
Huge disconnects like this allover the mkt place....the algo-march keeps going though....
I call my penis "Yield" then I tell people to reach for yield.
I'm guessing there's a reason bond investors have a reputation of being smarter than stock speculators.
Fuck this game , I'm the gold standard , I trust government for shit.
i think you can call it a bear trap in gold but we need 1080 on P&F. crude may be holding off its bottom. i am sure the fed is praying that it holds.
The FED doesn't pray, it ensures.