For 4 months we saw Treasuries trade in the tight range of 1.8% to 2.1% in the 10Y.
For 4 months we had glorious non farm employment numbers and rosy economic data that beat the Citi Surprise Index.
And after 4 months, Dow hits a 4 Year High.
I wrote about this 2 weeks ago. About the explosion in the balance sheets of the central banks in the world.
The story is further expounded in this article I found on line.
And It Takes 1 Bernanke to convince the world that everything will be alright ?
Call it unreal, or perhaps, it could be the solar storm effect ?
After 15 years in the markets and the lemming effect is still as powerful as ever, or even more so with the power of Bloomberg chatrooms.
Equities are up and away. Why ?
From WSJ 2 Mar :
|U.S. stocks may be surging, but investors have pulled $8.3 bio out of stock funds in 2012 and $10.6 bio into bond funds.|
Apparently its baby boomer effect (worth investigating).
Zerohedge 28 Feb :
|JPM Treasury Client Survey : Outright long highest since Dec 2010 : soon record longs in bonds and stocks|
So Shame On You, Trader, if you buy the banana-bollocks Bernanke did not even say. He just said moderate growth ! haha
I have gone long EEV US, EUM US, VXX US and SDS US last night.
Waiting to buy GLD on dips and will hold EUR/USD, AUD/USD shorts with USD/SGD long.
We are all tired. But we still need to be able to think.