Today’s gap is…? And what about that bond market?

Gap up yesterday…gap down today…with markets remaining…yes, hate the word…range-bound! It ‘s not our fault. We have nothing to do with it. When things change, we will let you know. Eventually, the major indices will show their hand but with half the market fighting against the other half, it is tough to make hay. Maybe the fake employment number will do the trick.

The one thing we want to reiterate to you is the continued breakdown in the bond market. Not only are we seeing int in the governments, we are seeing it in the corporates. As you know, we think the high yield end is about as mispriced an asset as we have seen in a long time. Keep in mind, yields are still very low versus history. But that is not market-based. It is based on the trillions printed by central banks. In addition, because of the back-up in rates, interest rate-sensitive stuff continues to act bearishly, namely utilities and real estate. We continue to tell you to avoid.

Clinton’s Popularity Takes Hit Amid Controversies–Polls


Required Reading Of The Day

‘Muscle Memory’ Behind Americans’ Concern Over Economy – Fox Business

IRS Employee Steals Using Taxpayer’s ID’s – Fox Business

Liberty’s Malone Eyes Content Consolidation – WSJ

Donald Trump: I Would Be the Jobs President – Fox Business

Government Bond Yields Hit 2015 Highs – WSJ

ECB Stands Ready to Provide More Stimulus – WSJ

Chart Of The Day: We Remain Bearish On The Bond Market

Interest rates sensitive areas continue to breakdown…





Charts courtesy of

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