This is the break that I and the two other surviving equity bears on the planet have been anticipating. Financials have broken the trendline established by the criminal intervention in the market Steve Mnuchin executed on December 26th. Now things get more interesting.
Slope of Hope blog homepage
Slope's proprietor likes trendlines while I prefer horizontal support/resistance lines but we both agree on a little alliteration in the headlines.
And from The Fly at iBankCoin:
Let the Bond Market Be Your Guide
As long as TLT keeps going higher, stocks will be under pressure. The entire yield curve is fucked now and it’s applying stress onto banks. While we do not need banks rallying for the market to rally, we do need the banking sector to be vibrant and healthy, otherwise capital flows will contract and the economy will fuck itself into a recession.
I’m suggesting that you watch the 10yr yield too, presently at 1.87% for signs of a reversal before you step in large with big dicked buy orders. This being a Friday and all, you’d be hard pressed to find the market rallying with any real verve — and much more likely to panic press into the close....MORE
