The market is trading sideways, as yesterday's post showed. The interest rates rose more today, basically now at levels before the market collapse in 8/2008.
So lets see interest rates go parabolic, have the CNBC talking heads say that high interest rates are proof of a recovery, and have the market go up to DOW 10,000. If this happens, I'll be damaged, but I'll probably go ballistic and bet the farm for a market short.
I expect the market to break UPWARDS, then make a pullback at the end of the day or the next day. That expectation may have been met Wednesday, but if I expect history to repeat itself, I need to have a day like I want to puke, and drive my car into tree. That is usually the top, and near impossible for me to double down as I see the market going to the sky.
Once this breaks, and it will after the games are done, it won't be pretty.
As a side bar, WHO is scheduled to make an announcement, I expect they declare the swine flu a world wide pandemic, but not deadly (yet).
Lets look at the US 10 year treasury interest rate chart, TNX.
|From WebSurfinMurf's Financial Blog|