It's nice of the WSJ to jump on the 10-year note benchmark bandwagon. It's also a healthy reminder to me to stop looking at the 30-year bond. My feel for the market was better when I could use the fixed income markets as snapshot of inflationary sentiment.
I think this market has been difficult for a number of players. For example, with last week's stronger ECI figure, the techs ran like madmen, supposedly due to great earnings. In my effort to find another explanation, I got to thinking, "Gee, maybe they want the companies that don't have much debt on the balance sheet, which would make them less interest-rate sensitive. That would tend to point to tech companies." Satisfied, I played along with the game like a big dummy.
Now, without the earnings catalyst, inflation and interest rates matter again. The whipsaw risk becomes a reality, and the Cubes pull a Failed Signal.
<<Traders pointed out that the Nasdaq had gained 13.7% in five trading days, on relatively thin volume. The light trading indicated that investors remain nervous about the risk of another big Nasdaq decline, and it made a pullback likely.>>
Productivity figures out soon. Nasdaq futures off 23 points at this time.
RT |
