Summer Monday Blues

Blah or mah! how to explain today price action,Spoos Higher, Bond higher Dollar index lower.Trend Line support for both 10 and 30 year yields is holding again today. 5s-30 yield curve as bit flatter today trend is sideways to steeper, less confidence in Economic outlook =Flatter curve. Plenty of negative Virus News but markets have ignored it today From IFR news:

The divergence between stocks and bonds looks set to continue. The bulls argument is that the increased cases no longer translates to economy lockdowns. And were they to occur to any great degree, that there will be new fiscal and Fed programs. Perhaps, but we already know the Powell Fed’s reaction function. The Fed jumps into new policy actions, but only when stocks tumble 20 or more percent from the highs. Thus for now, it’s difficult to call the range in 10s, anything more than we’ve advised for days, 75 bps to 65 bps.” So there is that the worse it gets the more Stimulus markets expect

European bourses still trading in the red While NDX reaches for a new all time highs,VIX -7% Bonds sitting in the middle of the range,A snapshot of today’s leaders

No real outliers ,net Change by sectors, bond proxy utilities +1.5% followed bu Information technology +1.24% as a sector. health Care.-.9% and real estate(-.7%) are the sectors lagging . never sell a quiet market as A wise man once said

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