The Yuan Rally Fades Away

Yesterday’s yuan rally totally collapsed and we’re not advancing much at all today. The market is becoming similar to a World Cup match—little scoring and lots of buzzing in the background.
The Buy List is finally having a good day today. I said before that I was wary of Bed Bath & Beyond (BBBY), but I didn’t expect such a pullback in that stock. I’ll be very curious to hear what they have to say about Q2 when Q1 earnings come out tomorrow.
The most notable move today is that energy stocks aren’t doing well. This is good four our Buy List’s relative performance since we’re underweighted in energy.
I’m also surprised by the rally in the five-year Treasury. The yield has dropped from 2.3% yesterday to 2% today. That’s a big move. What’s interesting is that the five-year T-note has tried repeatedly to break below 2% and it just can’t stick. It bounced off 2% last December and has had a longer battle with 2% ever since late April. If I knew more about technical analysis, I might call it “resistance.”

Posted by on June 22nd, 2010 at 1:37 pm


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