Stock Quote        
  Join        Login  
logo

Tuesday Interest Rates and the US Dollar - Oct 1 2008 8:53AM

 October 01, 2008 08:52 AM




I have never seen or heard the TBill rate discussed in the media as often as I have these past two weeks.  For good reason though.  So I don't have anything to offer you don't already know.  It is encouraging to see the rate back up at the top of the range.  But at this level its still obvious credit stress and fear remain, and a Fed Funds cut is likely.
 


Staying with the TBill.  Here is a look at the long-term.  The TBill peaks were buy signals for the stock market until late 2000 when the peak switched to a sell signal.  Anyone have a theory why the trend changed?  A trend from inflation to deflation?  Leverage?
  


The bond/stock ratio doesn't favor stocks at the moment... not by a long shot.  How much further does this ratio have to go?  It doesn't look ready to change trend anytime soon to me.  According to Cramer, there is always a bull market somewhere.  This ratio says that right now, the bull is US Treasuries.



Top quality corporate bonds are getting killed lately, another bad sign for this stock market.  But the corp/treas bond ratio could be a good early signal that the bear market is over based on the last recession.  The ratio bottomed and recovered in late 2002 when stocks were still bottoming.

Rich
i On The Market - Daily Newsletter
Every trading day, be ready to attack the market instead of reacting to the market.

You will know where the key technical resistance and support levels are and what the market is likely to do next. iStock will arm you with a target list of stocks to buy and sell - right now - based on our exclusive, proprietary trading models.

Two Week FREE Trial


Signup for i on the market daily edition


Advertisement

Comments Closed


Advertisement
Connect with iStockAnalyst
Popular Articles
Recent Research and Quote
Advertisement
Partner Center
Home | Login |Research | Earnings | Scans | Charts | Submit Article | Join Blog Network | Advertise | Subscribe to RSS

Terms of Use | Privacy Policy | Copryright 2013 all rights reserved



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.