Clint,
Ralph spoke again today. Look what he did with my csco. Took 1/2 point loss on it. It should have found a short term bottom here today if not for our dear Ralph.
U.S. 30-year bond yld may rise to 6 pct - Acampora
NEW YORK, Feb 9 (Reuters) - U.S. 30-year bond yields could rise to 6 percent in the short term if yields breach the top of its recent range, said Prudential Securities technical research director Ralph Acampora said in a report on Tuesday.
''If rates were to rise above the 5.4 percent level it could mean an eventual rise to 5.7 (percent),'' Acampora wrote in Tuesday's stock market outlook. ''If push came to shove, a rise to 6 percent could also materialize.''
On Tuesday afternoon, the yield on the 30-year bond was at 5.33 percent. A month ago, it had risen as high as 5.36 percent and again threatened to breach 5.35 percent on Monday. But analysts said buying emerged, since a yield of 5.35 percent to 5.40 percent reflected solid support.
Acampora's remarks come a day after he forecast a 5 to 10 percent decline in U.S. stock prices near-term. While calling the correction ''normal,'' he said it ''could turn ugly if interest rates become a problem short term.''
''A bigger rise in rates would likely have a negative effect on the overall stock market,'' he added.
The influential strategist noted that the last time 30-year bond yields were at 6 percent was in early 1996, when yields rose to 6.4 percent. The Dow Jones Industrial Average dropped 4.5 percent in a few days and another 5.3 percent a month later, Acampora recalled.
Still, ''all in all, the secular bull market remained intact (for stocks) despite the near term rise in rates,'' he wrote. ''Rising (bond) rates only caused a near term correction.''
Iris
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