Rate relief rally - really?
Maybe, but I'd like someone to distinguish this hike from prior ones. My take is that longer term rates are no higher in any significant amount from when the Fed started it's multi-month hike over a year ago. My belief is that every prior rate hike regime was accompanied by rising longer term rates, and an equity relief rally makes a bit of sense in that regard, because investors tend to compare longer term returns from bonds to stock returns in deciding where to put their money.
But this time, given the failure of longer term rates to respond to the Fed hikes, you have to ask, WHAT RATE HIKE? If there hasn't been one, how can there be any "relief" rally?
This all looks to me just like a typical, canned window dressing for the turkey. And I note that all my stochastics for the Dow, Nasdaq and S&P are getting right back to the overbought levels that have seen pull-backs every time for the last few years. I have been expecting the range will be slightly stretched toward, maybe a little over, Dow 11,000, but then it's right back to the other end of the range. Nothing sustainable here from my perspective, and more than a little tricky to trade.
I sure wish I knew enough about all this stuff to be even slightly knowledgable about it. Remember, this ain't investment or trading advice.
0 Comments:
Post a Comment
<< Home