Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (39096)	10/17/2012 5:24:09 PM
From: Keith Feral	1 Recommendation Read Replies (1) \| Respond to of 218824

With TNX pressing through the 200 dma, we are getting a very good indication the bond market thinks that things are turning around for the better. It's tough to bullshit the bond market, given how few directional changes it will see over a business cycle. Bond market is screaming economic recovery right now! The downward slope of the trendline from the past few tops in the 10 year doesn't really come into place before 2.7%. We could see a huge rally back through 2.25% by year end on the 10 year yield. People were really uneasy when the 10 year yield dipped below 2% last Spring. Very uneasy when it hit 1.4%. Even last week, nerves had to be half fried with the yield back at 1.62%. Today, the market only got a smirk on it's face thanks to the EPS bloodbath from INTC and IBM. The question that needs to be answered is what asset class will absolutely do better in a rising interest rate environment. I think the answer is self evident - banks!