Correction of my above post, bonds are at 11300 not 11100 a 20 basis point typo!
Rs – there is a very strong seasonal rally tendency for bonds starting in July (lower rates). That did not tell us we would get 1000 Dow Points or 100 s&P points. It did tell us to look for it to happen, and if it did, look to the long side, or at the very least pass on shorts. Normally, we get a lag of a month to 4 months between the bond market moves, and stocks following. This time they occurred simultaneously which made this tougher to enter.
I am watching the bonds very closely, if they were to break down tommorrow on the non-farm report and break the uptrend, that would be bad news for stocks eventually. I hope they hold up and we get a stock dip, for the buy spot.
Nobody can predict the future all any of us can do is make educated guesses about what is likely to happen based on historical relationships.
