Why, it’s the Pigs. Despite all the interest rate hype the Banks, which should benefit from a breakout in long-term yields, are still bearish.
In a now public update yesterday we looked at the reasons 30 year yields may not continue to rise, despite the opinion of chart jockeys far and wide (including me, as I see the pretty chart patterns on yields).
Yet here is the BKX dropping below the moving averages again despite the recent ramp in yields.
Worse yet, it’s leadership to the S&P 500 remains under much pressure and trending down in the face of the recent spike in 30 year yields. When considering the info presented in the update a bond bear (and stock market bull for that matter) might want to at least stop for a sec and think… ‘hmm, what’s up with that?’
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