Friday, July 20, 2012

Things That Make You Go "Hmmmm".

This headline is not original but I could not find anything more appropriate.

About 10 days back I shared a US $ chart by Chris Kimble. Today he has an update:

Now let us see how far the Dollar goes.  This is consistent with my call for major correction in the equities in the coming days.

Today SPX dived down out of the gate but someone was trying very hard to hold the line as you can see.

Will it hold on Monday?

The last chart of the day is from which is self explanatory.

Normally the treasury yield and equities market have moved in tandem but since the beginning of 2012, they have diverged. Is this a temporary phenomenon? If not who will catch up? The red line will come up to blue? With $ 16 trillion debt, can America afford to pay more interest?  If not then the blue line has to come down to the red. The thought itself is so fascinating!

The yield today is lower than it was at the height of the financial crisis. Does the bond market know something which the equities are not aware of?  We will soon find out.

Thanks for reading I need some stimulus from you guys and as Tim says, please click on to the Ads.  Have fun and enjoy the weekend.