There were any number of titles I could have used for today's blog as the follow through downside action was impressive. But while we've been here before in the equities market, the bond market is setting new records.
Today, the 10-year note closed with at an eye-popping yield of just 1.715%. The driving factor behind the move was continued global growth fears along with the European debt crisis. The 20-year saw its yield fall to 2.786%;
Stocks were modestly lower to flat yesterday until the Fed's policy statement was read just before 2:30 PM yesterday. How did investors react? It was a twist and shout sell.
The Dow lost 284-points. For the TSP, the C-fund dropped 2.94% yesterday, the S-fund sank 3.37%, the I-fund lost 2.75%, and the F-fund (bonds)
"Operation Twist" was the big news event of the day and the market responded to it in convincing fashion, although the majority of losses occurred in the final half hour of trading, which was well after the initial news hit the wires.
The FOMC revealed that it would purchase $400 billion in Treasuries in the 6 to 30 year maturity range and sell an equal amount of shorter term Treasuries. It wasn't unexpected, so it appears to be a "sell
Stocks rallied early but fell late as the 50-day EMA continues to act as resistance. The Dow closed up 8-points, giving up most of the day's 150-point gain in the last two hours of trading.
For the TSP, the C-fund was down 0.16% yesterday, the S-fund lost 1.45%, the I-fund added 0.53%, and the F-fund (bonds) slipped 0.07%.
I'm going to do an abbreviated blog tonight as I'm not using a computer that has the software that I normally use, so I can't get all seven images posted. But I'll still speak to the two I'm leaving out.
Here's five of the charts:
NAMO and NYMO both dipped below the neutral line today and are flashing sells.
NAHL and NYHL are the two charts I won't be showing, but I did