Our position on the market is simple. On a trading basis we are long with breakeven stops, and should SPY start to close above 215 our target of 223 should be struck. What we see is the long end of the curve is falling while the short end is still about where it was. The risk is that this is not tenable, and long rates will move back up more quickly – which at this point would be a surprise. We would continue to sell TLT and other bond instruments at 134 on TLT and move into high dividend stocks.
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