The lack of commodity participation is clear disappointment with the ever diminishing chances of QE3 any time soon as commodity inflation/price appreciation was a hallmark of easing.
Credit markets are much bigger than equity markets and are traded almost exclusively by smart money, High Yield Credit in particular is their choice when expressing a bullish view, when they are moving out of HY they are expressing a bearish view and usually moving to a safe haven asset like investment grade.
Here are both this morning thus far...
Commodities are nowhere near the SPX today and continue to trend down.
HY credit continues to trend down, usually their positions are so large that they can't turn on a dime so it's not surprising they aren't chasing what the charts all seem to have indicated to be a "short term" move.
No comments:
Post a Comment