3-1-12

Before the open.
Markets to open up this morning. Interest rates on the UST up. Usually I would expect the stock market to go up when there is less buying in treasurys. However, I expect the relationship to change for awhile here.

The stock market may have to digest the fact that interest rates will not be low forever. It is to be expected that if the economy picks up interest rates will rise. But this markket seems to be sensitive to interest rates. In fact it seems that the markets have becoming increasingly sensitive to interest rates over the last several years. Like a junkie needs increasing doses of drug to maintain the high!

So, I will attempt to make myself stand aside and wait for a p ile of money to be laying there before I try to  pick it up.....
And of course there is Iran and oil and the debt.....
gh