We all understand that TLT and SPY are inversely correlated, and we don’t need a lesson why. Look:
TLT has been making large moves, and thus, the market is up triple digits in back-to-back trading days. Is this just the Santa Clause Rally? Does the market have the Fiscal Cliff priced in? I don’t think so. Selling TLT, GLD, and SLV, to buy high beta names, is highly risk on. With the fiscal cliff looming, you’d think the market would be far more risk off, especially without a deal being close. It’s not though, it’s ripping. Not only is it ripping, but names that traditionally rip in late December are doing it, waltzing like sugar plum fairies, being used as window dressing. It’s great, and I think there must be a deal. Let’s hope so.
Apparently I can’t play with the WNR, so I’ll just continue slapping the P. (Way more hetero anyway).
Top picks, Vee-Hicckles and Tools: THO PII HOG DW SSD SWK TTC
