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Yields

The Big Bubble - Correlation S&P500 vs Treasury 30y2007-2012: Convergence between S&P500 trend and yield on Treasury 30y USA: - Downhill stocks leads to a reduction in yields on the bond market . The flow of money coming out of the US stocks and goes to US bonds for the "safe haven" - RISK OFF. - Rise in share prices on stocks leading the market yield bonds to rise due to the vendite.Flow of money out of the US bond market and goes on US stocks - RISK ON. START THE BUBBLE: The first divergence for Fed QE & BoJ: A rising index corresponds to a fall in yields = excess liquidity in the market - Bubble begins to swell and then be absorbed THE BIG BUBBLE: The divergence between performance of the stocks and lower yields on the bond market is the highest ever. The bubble is always more swollen and the two lines more and more divergent. A Fed rate hike (and therefore yield) approaches the two lines (seen in early 2015) but if this were not enough the bubble may deflate and bring down the stocks..fly to normality?! BE CAREFUL
FX:SPX500Short
by guado77
Short Office REITSMacro: The Short term spike in yields triggered a large selloff in REITS. As mentioned in the 10 Year yield post, The yields are likely to rebound until at least end of year which could put downward pressure on REITS. Technicals: USDH is underperforming the S&P which is setting up for a possible short across the board over the next weeks. The bearish divergence YTD and the recent new low today suggests that price could start reversing from the uptrend YTD. Ideally, a short position should be entered on a weak stock within that weak industry after a retracement to the 20 DMA and a downtrend confirmation on the day chart. Initial target: the 61.8% fibo retracement to 148
SShort
by Rogue_Analyst