Comments on: Intermarket Analysis: Bonds Expensive, Stocks Cheap http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html Freshly squeezed market commentary & analysis Thu, 20 Nov 2008 12:18:14 +0000 http://wordpress.org/?v=2.0.2 by: Reasons Why This Is An Intermediate Bottom http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html#comment-32237 Thu, 13 Mar 2008 07:06:37 +0000 http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html#comment-32237 [...] Stock and Bond Dislocation I’ve already mentioned that these two important markets were becoming more and more dislocated: stocks were cheap and bonds expensive When the two markets become disjointed it usually flags an important inflection point. double bottom, double bottoms, dumb money, financial sector, inflection points, Lowry, put call ratio, resistance levels, running of the bulls, sentiment, sentimentrader.com, smart money, stocks bonds [...] […] Stock and Bond Dislocation I’ve already mentioned that these two important markets were becoming more and more dislocated: stocks were cheap and bonds expensive When the two markets become disjointed it usually flags an important inflection point. double bottom, double bottoms, dumb money, financial sector, inflection points, Lowry, put call ratio, resistance levels, running of the bulls, sentiment, sentimentrader.com, smart money, stocks bonds […]

]]> by: 13th Carnival of Making REAL Money: February 17th, 2008 | Making REAL Money Blog http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html#comment-30858 Sun, 17 Feb 2008 17:34:19 +0000 http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html#comment-30858 [...] Babak presents Intermarket Analysis: Bonds Expensive, Stocks Cheap posted at Trader’s Narrative, saying, “Right now, the annual rate of change for 10 year bonds is very close to reaching the historic level that has marked a top for bonds (and a bottom for yields). Interestingly enough, each of those times was also a good time to not only sell (or sell short bonds) but also to be long stocks.” [...] […] Babak presents Intermarket Analysis: Bonds Expensive, Stocks Cheap posted at Trader’s Narrative, saying, “Right now, the annual rate of change for 10 year bonds is very close to reaching the historic level that has marked a top for bonds (and a bottom for yields). Interestingly enough, each of those times was also a good time to not only sell (or sell short bonds) but also to be long stocks.” […]

]]> by: Babak http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html#comment-30190 Thu, 14 Feb 2008 01:17:48 +0000 http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html#comment-30190 Black Crow, do you mean to ask why I didn't include the two signals from 2001? no real reason really - I'm just eyeballing it and they were close but not quite there. Also, the ROC didn't cycle high enough before coming down for those signals. But you're right though, both those signals would have been good buy points. Black Crow, do you mean to ask why I didn’t include the two signals from 2001? no real reason really - I’m just eyeballing it and they were close but not quite there. Also, the ROC didn’t cycle high enough before coming down for those signals.

But you’re right though, both those signals would have been good buy points.

]]> by: The Black Crow http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html#comment-30181 Wed, 13 Feb 2008 23:20:18 +0000 http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html#comment-30181 Hi, why not pointing the dips of the Annual ROC on the first chart begin en end 2001 as a 'buy' for stocks ?? Those readings are close enough to the red line to be valid. As you do that, you'll see that you can have those 'entry points' in a downtrend market too. Technical analysis can be good, but no need to fool yourself. Greetz Stefan Hi,

why not pointing the dips of the Annual ROC on the first chart begin en end 2001 as a ‘buy’ for stocks ?? Those readings are close enough to the red line to be valid. As you do that, you’ll see that you can have those ‘entry points’ in a downtrend market too.

Technical analysis can be good, but no need to fool yourself.

Greetz
Stefan

]]> by: Fed Model « High Plains Trader http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html#comment-29976 Wed, 13 Feb 2008 03:25:50 +0000 http://www.tradersnarrative.com/intermarket-analysis-bonds-expensive-stocks-cheap-561.html#comment-29976 [...] However, if enough people (read: the herd) believe that stocks are cheap relative to bonds, then I have to be prepared for what the people will do, buying stocks perhaps. The idea for this chart came to me in the form of an analysis of rate of change on ten-year treasuries done by Babak of Trader’s Narrative, who says that stocks may be cheap relative to bonds. I was about to argue that perhaps bonds were on the extreme side, i.e. - expensive, which may or may not make stocks cheap, but hey, who knows. [...] […] However, if enough people (read: the herd) believe that stocks are cheap relative to bonds, then I have to be prepared for what the people will do, buying stocks perhaps. The idea for this chart came to me in the form of an analysis of rate of change on ten-year treasuries done by Babak of Trader’s Narrative, who says that stocks may be cheap relative to bonds. I was about to argue that perhaps bonds were on the extreme side, i.e. - expensive, which may or may not make stocks cheap, but hey, who knows. […]

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