Rates Down, Stocks Up

I got right this morning upon seeing several things.

1. Rates were down.
2. SAAS stocks were up.
3. Commodities were down.

After I saw that, I closed my shorts and went to work buying up some longs. The day is young and anything can happen, but in my experience when SAAS stocks are strong you get a rally in the overall market.

The pressure applied to stocks is due to rates and how they stymie growth, since the cost of capital is high. Another factor is high commodity prices, which can hurt the consumer and also jack up the all important CPI. Today’s price action is exactly what the bulls want and I’d be shocked if we reversed lower.

I’m +30bps early going, recovered from early losses due to shorts.