Quit interesting chart from: http://headlinecharts.blog.com/Looks at 30 yr stocks as "stock" and correlates with Material stocks. This guy is pretty interesting for charts...
Point here obviously inflation pressure contuining to grow - making Bernanke and FOMC caught tonight.... to "please" market by backing down on hawkishness can be interpreted as
ignoring imminent inflation risk.. in other words.....there will be fire-works tonight.. Keep powder dry.
Strategy:
We took of all downside risk yesterday below 6.600 in Dax, due to: Oversoldness, FOMC, p&l respect, and finally, all the inverse indicators came into play: Greenspan (the worst market guy in history) - sees more trouble -- two weeks ago everything was fine - and the young and bold traders tells me:".... we are soooo close to March low "--- oh yes? What do you think I spend all day looking and thinking about ;-)
Links:
http://www.ft.com/cms/s/0/fea3e3e6-41f4-11dd-a5e8-0000779fd2ac.html
The spectre of inflation returned to haunt the global economy on Tuesday as companies ranging from Dow Chemical of the US to South Korea’s Posco unveiled sharp price rises to combat the soaring cost of energy and raw materials.
The moves by Dow, the biggest chemical group in the US, and Posco, the world’s fourth largest steelmaker, came as Charles Holliday, chief executive of the chemical giant DuPont, warned of rising inflationary pressures in the corporate sector.
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