I am being cautious here. The yield has breached a resistance point, and I am looking for the dollar to begin to rally. (This could also be a consequence of knowing the Fed will stop buying the notes.) Whatever the case, IMO, higher market rates will force their hand to raise the Fed fund rates.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhj2xj4h80yN3CuGhVqKP9bNfDPPnS6SHQ-cL1JtbHro6DGk9M1StIpmYHLwXPWhzMVG8rZq7IIYMJntIZw0z6go5feGT0TVxqAxvlES2f2Bhrb7OPHlbCAX1KBVQGoqwQQZ9FFS0xW2so/s400/10yr.png)
Even with my thesis in play, I will probably not unload all my stocks. Will most likely keep BKE, PWR, UUP and any other stock that gets all of their revenue from the US. As I think the dollar is setting up for a rally.
Sometimes, you are just plain spooky!
ReplyDeleteDan