Also note that bonds have been selling off ferociously lately causing interest rates to rise, signaling fear entering the bond market. I read an article last week on CNBC that stated the Freddie Mac 30 year fixed mortgage rate hit its lowest level in like 40 years at 4.17% back in early November after the QE2 announcement. Today, Yahoo Finance reports the average 30 year fixed mortgage rate is at 5.00%. Also, notice that the TLT which tracks the 20 year treasury bond has fallen off a cliff in an impulsive 5 wave move, interest rates move opposite to that. Many folks feel that the bond market is often a leading indicator since bond investors tend to be more long term and prudent than equity traders, so the bond market tends to lead the equity market. If so, equities are about to fall off a cliff just like bonds have.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.