TGIF -! Bulls liked the revised lower GDP Thursday and the cooler than expected PCE today. Despite the softening of US dollar and yields - as warned in my Bloomberg interview Mon for a short-term bond and equity bounce - the violent yield curve steepener we have had past week is not bullish equities or bonds big picture. Intraday, they are buying tech on every pullback. No growth to value rotation but instead as Oil sells off below 93.50 monthly resistance (now 90), the profit taking starts to kick in for XLE components. Intraday, my USD/10Y ratio rolled over from 310 down to 298 and SVXY bounced on cue, BUT I see all of this as needing confirmation.
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Lower GDP
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TGIF -! Bulls liked the revised lower GDP Thursday and the cooler than expected PCE today. Despite the softening of US dollar and yields - as warned in my Bloomberg interview Mon for a short-term bond and equity bounce - the violent yield curve steepener we have had past week is not bullish equities or bonds big picture. Intraday, they are buying tech on every pullback. No growth to value rotation but instead as Oil sells off below 93.50 monthly resistance (now 90), the profit taking starts to kick in for XLE components. Intraday, my USD/10Y ratio rolled over from 310 down to 298 and SVXY bounced on cue, BUT I see all of this as needing confirmation.