The small caps in the IWM, ETF for the Russell 2000 Index, seem none too concerned with a looming debt ceiling deadline. The first chart below is a 30-minute timeframe stretched back several weeks, which shows the latest V-shaped rally off a pullback low.
Next, note that TLT is selling off even though the bond market is closed today. Interesting, indeed. Is the Bill Fleckenstein theory of The Fed losing control of the bond market coming to fruition? We need to see more evidence in the form of another sharp spike in rates (and thus lower TLT). But watch this chart develop, as it have become squishy in recent weeks after an initial snapback rally.
Some stocks we are trading and stalking inside our live 12631 chat room service today: BSX GLUU PKD UBNT.
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Animal spirits indeed – nice pic. I almost half-expected to see a honey badger.
Honey Badgers are played out. I prefer lions, wolves, tigers. Oh yeah, and cougars.
tlt bounces around here, and then goes lower. You heard it from me last!
Stocks or bonds?