This Is All About the Rate Reversal

 | May 05, 2014 | 10:58 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:






People are desperate for a reversal day. They see that (CRM) is rising on an upgrade from Deutsche Bank. They notice that Twitter's (TWTR) not being killed by the expiration of the lock-up period. They see the reversal in LinkedIn (LNKD), a stock that was being pounded before the market opened.

None of those matter, though.

This is all about the reversal in U.S. Treasury interest rates. When rates go down, people want to own stocks. When they go higher, people want to sell. These particular stocks just happen to be the biggest coiled springs out there.

It is early. Be very careful.

But understand this: If rates get weaker, that signals lighter pressure from the Ukraine situation, and it also says the bond market is brushing off the soggy numbers from the likes of giant realtor Realogy -- the only real news today. It will say that stocks can stay strong because of the one-trick-pony behavior of this market.

Columnist Conversations

As I suspected in my CC note to you: Thanks to the stock market rally over the past week, II said Bulls rose t...
An extreme in (bearish) sentiment was one of the reasons I endorsed the possibility of a bottom recently. This...
As we look toward some of the clues that help guide our market outlook, there are some secondary sentiment ind...
I would pay attention to this one during the first hour of trading. I think the new CEO has lost all credibil...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.