First, lets look at Trace data:
I wont even bother continuing to point out the hi/low ratio - especially in high yield. So much for the bubble! Converts are naturally on fire as equities zoomed today (TMO continues to rock!).
Lets move on to CDS indices:
High yield continues to concern me that it is getting ahead of itself - or at least fully valued. IG is near value - a little left, but not much. There might be value in select EM credit, but one has to be very picky here.
And govvies:
Risk off - 'nuff said? EU might raise rates, US economic data coming in stronger than expectations - the one two punch to globals. Personally, I am short long US govvies as I feel (and pay) rising inflation that these intellectuals are gonna miss (perhaps they should do their own shopping - unless they shop ex-food and energy).
All in - good day for risk, bad day for "risk free". Ride the wave friend - but wait for the numbers tomorrow to get the feel for risk positions.
Oh yeah, giving credit where due: the charts today are from the WSJ online. Usually I have to dig multiple sites, but tonight I was somewhat lazy.
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