This Is All About the Rate Reversal

 | May 05, 2014 | 10:58 AM EDT  | Comments
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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.

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