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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 689.46-0.9%4:00 PM EST

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To: Chip McVickar who wrote (112238)10/10/2018 9:48:14 PM
From: robert b furman  Read Replies (1) of 222827
 
The correlation between bonds and equities has been broken.

Any one who has ever talked to a wealth advisor has been told to balance their portfolio with some bonds.

This is touted as a hedge to protect the portfolio's value in situations when stocks go down - it adds to offset the portion of the equity drop.

Nice idea, but too bad today it did not work that way.

Reminds me of the old saying, when you need to sell something, you sell what can be bought.

Since the bond shellacking started several days before the stock sell off, stocks finally got caught up in the selling.

That being said the 5 day trin has been really weak for the last 30-60 days and market makers have not been buying like they do during bottoming actions. Today that more than likely changed that.

Lot's of people were panicing about the decline in their portfolios. Since bonds were going down historically big, several days before and today they went down lock step with stocks that was a double whammy that was close to a panic level - they sold what had not been so beaten up before (stocks).

How's that chipper??

Bob
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