Good Morning on this best day of the week, Wednesday,
Bonds continue their sideways movement. There is a slightly bullish look on the chart and so far, miraculously, bond prices are holding strong in spite of an absolute freight train of a stock market. The Dow is up 200 on the day on better than expected earnings and positive vaccine trial news from Moderna. Seriously, will anything stop this thing? Well yes, we just do not know how much further it will go before what will be a correction of epic proportions. I still lean toward locking and fear if we do breakout of our range in bonds, we may break lower this time. I say this because charts show that bond optimism for the ten-year is about as high as it can get. EVERYTIME throughout history when this happens, the next move is a violent swing from too optimistic to too pessimistic. We can stay too optimistic for several days, but not for several weeks. Let’s not get caught off balance! For now, we remain range bound but be careful.
Please remain safe and stay healthy, make today great!