Friday, January 4, 2013

Is This Time For Real?

Many market players have been unsuccessfully calling (for a while) for bond and equity funds flows to start reversing. Yesterday's hawkish FOMC Minutes release may have caught most of the bond market "mattress money" asleep. I think that "reallocation trade" may have some legs if economic numbers continue to surprise on the upside. Be ready for NFP in the morning.

Correlation chart is backing up my view, at least for now.

click on chart to enlarge

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