Why is TLT and IWM Diverging?

DaveV said:
I don't understand why you think there should be any correlation between IWM (smallcap ETF) to TLT (Treasuries ETF).
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%%
LOL=exactly.
Like a profitable DOW derivatives daytrader noted ''DOW is correlated to itself ''
LOL + so true:D:D[Edit i seldom do DOW, great profitable quote anyway]
 
TLT reacting to serious doubts about the strength of the leadership and strength of the integrity of the US. As it may happen, TLT continues to follow steady downward trend and IWM starts a more robust downward trend going forward
 
I don't know......

Stocks were flat on the werk. IWM was the strongest index performer of the week with almost a 1% return.

TLT down over 2% for the week. Started sliding down on Tuesday afternoon close to the close.

Maybe just part of the stress test.
 
If you have an opinion on this, then tell me what dates you have in mind? I actually don't care beyond this. I only care about being true to Alexander Kraskov at this stage of my learning. I may be completely wrong.
 
Sergio123 said:
I don't know......

Stocks were flat on the werk. IWM was the strongest index performer of the week with almost a 1% return.

TLT down over 2% for the week. Started sliding down on Tuesday afternoon close to the close.

Maybe just part of the stress test.
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On My...Its looking rough.
This type of bond market activity used give signals before zero rate controls. Now that rates are no longer zero controlled...the bond market might be back to its old self. Which means Bonds are signaling serious danger and a Sell signal to the Stock Market.
Im not really talking about IWM here. But rather stocks as a whole.
 
Pricechange said:
On My...Its looking rough.
This type of bond market activity used give signals before zero rate controls. Now that rates are no longer zero controlled...the bond market might be back to its old self. Which means Bonds are signaling serious danger and a Sell signal to the Stock Market.
Im not really talking about IWM here. But rather stocks as a whole.
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EVs don't care. They laugh in the face of the Treasury market.
 
Sergio123 said:
EVs don't care. They laugh in the face of the Treasury market.
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You were very correct on this .
Im wondering...If the bond market got spooked over Biden's debat. And the Fed sees this. Will they just "ease interest rates" to smooth the general alarm?..yes , I think they will.
I think the market now realizes they will ease a few times by December. And I think they will generally ignore current inflation. So, "no more divergence" between TLT and IWM. I see some nice gains on IWM coming.
 
Sergio123 said:
I think that they may cut a quarter point this year.

The real "easing" will be through tapering.
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I always try to make logical sense of things. However...it really doesn't matter cuz the market going to keep moving higher...and higher.
 
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