This exit from growth and momentum is no fleeting theme. The persistent underperformance of Nasdaq and Russell are catching my attention. Remember, this is what happened in 2000 and 2007. The breadth deteriorated at the top in both of those years. It is eery that this is happening 7 years later in 2014. 2000-2007-2014. 7-7-7.
Yellen's testimony was on the hawkish side, and yet you still had bonds go higher during the day. There seems to be a theme developing here. An exit from riskier, high valuation names, to safer, more defensive names. And among those safe assets are Treasuries.
One thing going for the bulls is that sentiment seems a little downbeat, and dreary. Not fearful, just a bit depressed. I am slightly bearish, but not inspired to do anything with stocks here. I continue to hold my long Treasury position.
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