FROM YESTERDAY ON YIELDS AND MARKETS

We wrote this to you yesterday:

“Short but hopefully sweet!

Thinking yields putting in some sort of high today which would mean more than likely, a low for so many of the beaten up, stretched and extended broad market areas. Quite overdue. Bounces wont change their trend but relief back towards some sort of norm. Of course, yields will dictate but for today, feels like hit some sort of ceiling. Can only hope! Not blinking.”

This morning, yields plunging off of a not good jobs report. Of course, they are spinning but we deal in hard numbers here. Do not forget most employment numbers have been revised down. But back on point.

Why is the market gapping up off of such a number? Easier money. The broad market has been rocked by tighter money and higher yields. This morning, that loosens. Technically, yields were up in the trees while the broad market was in the cellar. This was due to head back to some sort of norm and it just happens to be this morning. How far? How long? Don’t know but the worst will come out of its deep slumber this morning.

A few more notes:

Good news that oil prices look to be now trend down on a short term basis and hopefully turns into longer term.

Don’t dare look at STX and WDC. Competition directly aimed at them has them down 10%+.

Those heroes on that airplane. What a story not just on what the pilot and passengers did but how that airplane did not break up at speeds it should have. Wow!