Stock Traders: Switch Bias To Neutral Or Bearish Mode
By Capturetrends:The market fundamentals and technicals are showing that it's time for bulls to turn cautious on the long side and at least book some profits on their positions. The bears, on the other hand, might begin initiating some short positions, hoping for the markets to sell off a bit.Interest rates are a key factor in the direction of the stock markets, and they have been rising. Interest rates on key US Treasury bonds have risen since October 2011 as their prices dropped. Interest rates are inversely related to bond prices.
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The 30-year US Treasury has dropped 5% from it's peak at the time of writing this article. The 10-year has dropped about 1.7% from its peak. These may not seem like huge drops for equity market traders, but they are considered substantial by bond investors.A better guide to the turmoil in the bond market isComplete Story »