So Much For Quiet Markets–Stocks and Interest Rates Jump
By: Tim McPartland,
Just when we thought markets would be quiet for a few days we get a day when stocks jump by over 200 Dow points while interest rates shoot higher (the 10 year treasury up 10 basis points). We sure can’t make sense of this. The Dow jump would indicate a belief of no rate hike on Thursday while the treasury yields would indicate the belief in a hike–we can’t have both. Seems to us that there are more market hijinks occurring–and why not–money is good for traders when they push markets around. Money can’t be made if we don’t have volatility I guess.
We shall see what Wednesday brings. There is no predicting what will happen in the short term–traders will run the markets in whatever direction works for them. We can be certain that mom and pop won’t be in playing around–and if this continues they won’t be back for the next 5 years.