10yr may kill Dow

While everyone was watching the SP after the Fed, did anyone
notice what the 10yr did?? Rates moved higher..

As many of you know, how tightly correlated the Dow is to the dollar. Think of 2 weeks ago..the dollar spiked intraday, the Dow went from up 100 to down 100 in a matter of minutes.

The bottom line, if the trend in the 10yr catches traction tomorrow, and this begins to spook the dollar shorts, well you know the rest of the potential story.

Sources all over have said for weeks how huge the short dollar carry trade is, a virtual money machine, played from all over the world. The potential reversal could be dramatic and affect not only stocks, but crude and Gold as well.
 
Yes. Only one thing can happen. Either gold goes to the moon, or the indexes crater into oblivion.

I don't get why so many gold bugs call the end of the world, and at the same time call for a stock-market crash. It's possible, but so highly unlikely. :eek:
 
I thought if rates moved higher, treasury prices were declining meaning a declining dollar??...possibly because people think there might be a rate increase in the future?? correct me please
 
Quote from inks2002:

I thought if rates moved higher, treasury prices were declining meaning a declining dollar??...possibly because people think there might be a rate increase in the future?? correct me please

That's exactly what I thought. I'm a little confused...
 
Quote from inks2002:

I thought if rates moved higher, treasury prices were declining meaning a declining dollar??...possibly because people think there might be a rate increase in the future?? correct me please
Bond prices go down, rates go up, all else equal, ccy appreciates, by interest rate parity.
 
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