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Strategies & Market Trends : YellowLegalPad

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From: John McCarthy9/26/2010 7:52:13 PM
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CHART 3 - S&P vs 2 Year Treasuries
by David Rosenberg



by Casey
I have no doubt that this is a bear market trap, but timing when the trap will close is a near impossibility. One bit of useful input came today in the form of a chart in David Rosenberg’s letter showing the tight correlation (75%) between the two-year Treasury note and the S&P 500.

His take is that either yields have to rise or the S&P has to fall.

In my view, the two-year rate will rise, causing the S&P to fall. It’s just a question of time.

caseyresearch.com
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