Monday, October 1, 2012

Looking to leg into stocks vs bonds trade

With the expected divergence between stocks and bonds at the widest in 6 months, and cyclical forces leaning to a contraction in this spread, i'm looking for entry points.

I'm hoping / planning on selling bonds into a UST rally that takes 10yr notes / futures to the top of the bell curve.  Given this early mornings volatility, the top of today's bell curve is just about the same as Friday's highs.  The overnight rally in stocks is not helping this effort, but who knows where stocks will end up.

Also interesting of note is that the overnight low (so far) was Friday's high mode.  Just something to ponder for now.

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