Bonds have been in an uptrend for a long time , as the chart shows, it has been in that uptrend for almost 25 years. whenever the bond price bounces from the lower trendline, stocks go into a weak phase and vice-versa. I think stocks are going to be weak for the next couple of months. My guess is that S&P500 will remain weak and go into a downtrend phase, but later it will mount another rally to the 1500's during the election year(2012).
Thursday, May 05, 2011
When Bonds Turn Up Stocks Retreat
Bonds have been in an uptrend for a long time , as the chart shows, it has been in that uptrend for almost 25 years. whenever the bond price bounces from the lower trendline, stocks go into a weak phase and vice-versa. I think stocks are going to be weak for the next couple of months. My guess is that S&P500 will remain weak and go into a downtrend phase, but later it will mount another rally to the 1500's during the election year(2012).
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