A New Safety Zone for Bonds

 | Jul 08, 2013 | 2:52 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

pcln

,

trip

,

line

Smooth follow-through rally. One based on laggards like coal and trip-related stocks like Priceline (PCLN) and TripAdvisor (TRIP), and beaten-down stocks like Linn Energy (LINE). (I sure wonder about the mechanics of that raid and how many got short it and who did it, knowing that the SEC would have to investigate even as the options strategy had been repeatedly blessed by just about everyone who was anyone in regulation or accounting. I guess only the SEC can find out, but it is worth finding out for certain.) Even the gold stocks prove they can rally.

We are now in one of those markets where we seem to have a new safety zone for bonds. If they stay below 2.75% we can get a rally and if they don't we can sell off. Hopefully we get an announcement soon that the tapering has truly begun so we can eliminate that uncertainty and guessing game. I just wish it could be announced simultaneously with some sort of infrastructure initiative from the White House and Congress, but that's a pipedream. Anyway, all the money saved has to go to Medicare spending. Perhaps one day the government officials in charge will actually read one of the stories about the outrageous regional pricing of so many procedures and crack down. That, plus an immigration bill that allows millions of new citizens to pay into the system. Otherwise you can bet that affordable care will start when the tapering starts in earnest and we will have higher rates and higher costs, something that only the biggest of businesses can afford.

Of course, it's the biggest of businesses that are rallying, so I don't even know if it's bad for the market anymore. Just bad for the individuals caught up in the mess and having to pay more for less healthcare, which we know is where we are going.

Quiet day. Up day. Simple day.

Columnist Conversations

Is this the biotech revolution or the biotech bust? View Small Cap Biotechs Like Never Before: Transparency is...
Market gets hit from impact of sanctions against Russia for second day in row but manages to rally a bit to en...
We took out some of the high end of support, but I'm still looking at this symmetrical pullback for entries on...
going into trading today roughly 37 million shares of X (US Steel) was held short.today big X has traded 27 mi...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

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.