Yesterday’s Worden Report was too good not to post:
Poison GasBlue chips broke rapidly at the gate today, breaking out of patterns that just a day earlier looked sickly and hopeless. This was all on better-than-expected economic news. Later in the day, when it was realized that bonds were plunging, the party broke up. Most of the gains were surrendered at the door on the way out. I suggest you look at the chart of DJCB-X (Corporate Bond Index) to which I have attached a note.
I think it will be a day or two before we can get a good handle on how this will play out. That was a mighty strong rally to collapse like that and there was a lot of good news to fuel it. But the yield on ten year bonds rose precipitously to 4.5 percent. For the stock market, this is like poison gas in the air conditioning system. -DW
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Later in the day, upon biting into a piece of strawberry cheesecake, Bob realized he had forgotten to put in his dentures.
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