I keep hoping for things to change and we get some kind of consolidation at some point. But we must respect the market and what it’s telling us. We got a peek at the FOMC minutes yesterday with no material changes except a hint of a possible increase in transparency and Jon Hilsenrath of the WSJ pointed out the change in verbiage from ‘a couple’ to ‘several’ Fed members indicated additional easing may be necessary. Only time will tell once Operation Twist ends next month what Bernanke will pull out of his bag of tricks.
Looking at the charts, yesterday saw some weakness in the high yield space, which had been holding up fairly well during this most recent decline. both $JNK and $HYG became the latest victims of this sell off.
Copper (as you can see below) has continued to slide with commodities losing their vogue status. Copper tends to be a good bellwether of the markets risk appetite and can provide clues to how frisky traders want to be.
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