• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

While You Gawk at a Rich Man's Tesla Wreck, I'm Eyeing the Bonds

Here's why interest rates are more important for the overall market than one stock, even a really popular one.
By HELENE MEISLER
Dec 28, 2022 | 06:00 AM EST
Stocks quotes in this article: TSLA

Note: Meisler's next column will be Tuesday, Jan. 3. 

Everyone seems obsessed with the move in Tesla (TSLA) . I can see why. It is like watching a slow motion car wreck on the highway, you simply cannot look away. But does this one stock matter that much for the market as a whole? I mean, why isn't anyone fussing over what matters much more to stocks?

That's bonds.

Where is the focus on the move in bonds? It may not be as eye catching as Tesla's collapse, but the yield on the Ten Year bounced right off that blue line (as it should have) and crept higher for most of December. There is no hysteria yet, but if rates get to 4% (they ought to make their way there) I can see some hysteria. Although maybe not until after the calendar turns to 2023.

Perhaps everyone is too busy watching Telsa's meltdown this week to fuss over bonds but the Daily Sentiment Indicator (DSI) for bonds is now at 21, so a little back off here (in rates) and another push upward toward that 4% area in the next week or so could/should bring that DSI low enough again (it was single digits in October) for bonds to rally one more time.

For me, interest rates are more important for the overall market than one stock, namely Tesla.

What about Nasdaq? I have noted this 10200-10300 area a few times now, but take a look at this now third trip down here in as many months.

Now let's pull it back and you can see on a longer-term basis, this area is quite important.

So, sure, breaking this level would be a negative (something I have said for months now) on an intermediate term to longer term basis. In the near term, however, the DSI for Nasdaq has fallen to 16, so any break from here would take the DSI toward, or into, single digits and then ought to produce a rally. The only issue would be the resistance left overhead.

My own short-term Oscillator is moderately oversold and I think that means we ought to rally once more into year end.

My big issue is that the intermediate-term indicators are not yet oversold. They are heading that way, but like fine wine one cannot make them get there any faster.

This leaves the indicators in the same place they have been since late last week. That's short-term moderately oversold and the intermediate-term indicators inching toward an oversold condition, but not there yet. The only change has been the move in the bonds.

Wishing everyone a very happy new year!

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: Bond Funds | Investing | Stocks | Technical Analysis | Bonds

More from Stocks

Nvidia's Ready to Move, So Don't Get Left in the Ray-Traced Shadow

Ed Ponsi
Jan 27, 2023 6:00 AM EST

Here why this tech name should be back on your radar -- and why you should question downer economic forecasts.

Chevron Is Not Only Greasing the Wheels, It's Turbocharging Them

Jim Collins
Jan 26, 2023 5:07 PM EST

Let's look at why CVX's buyback news is a big deal for investors.

Traders Hold Their Noses and Buy

James "Rev Shark" DePorre
Jan 26, 2023 4:27 PM EST

The dull market got a boost from Tesla, but this is not the kind of action we want to see.

The Long-Term Trend of Booz Allen Hamilton Is Bullish

Bruce Kamich
Jan 26, 2023 12:15 PM EST

If the earnings report is bearish, here's what to know.

As the Bears Battle the Bulls, the Market Action Remains Choppy

James "Rev Shark" DePorre
Jan 26, 2023 11:40 AM EST

GDP, unemployment claims, and durable goods reports were better than expected, creating hope that the Fed will be able to create a soft economic landing.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 03:06 PM EST BOB LANG

    LEAPS Webinar

    This week, I offered a free webinar session talkin...
  • 02:53 PM EST REAL MONEY

    LIVE EVENT: Chris Versace and "Sarge" Guilfoyle Share Their Stock Market Insights

    This Monday, Jan. 30, at 12 p.m., our very own exp...
  • 04:58 PM EST REAL MONEY

    The Latest AAP Podcast!

    Listen in as AAP Tackles Earnings, the Fed, Recess...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

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

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.

FactSet 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.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login