Those sitting with cash waiting for a pullback to buy are being forced to wait. I was expecting some kind of pullback this week ahead of the Alibaba IPO, but Yellen leaving "considerable time" in the language and refusing to say anything hawkish keeps the market afloat. Unusually, the bond market actually sold off on the dovish Fed, which is counter to the price action we've seen for the first 8 months of the year.
It seems those who waited to get bonds finally threw in the towel and got back to their normal allocation and that buying force has dissipated. Also, the Bund has been a driver for global yields to go lower, and since we've rallied so far and really have limited upside in those German 10 year yields, it has seized to provide that lift. I still believe there will be a bit more consolidation at these yield levels, before a strong stock market and imminent Fed language changes begin to take a bearish toll on the bond market.
I am left with nothing to do, with stocks refusing to pullback. I am forced to wait and hope for a pullback to buy. It will be gobbled up by buyers just like me for sure. The last 2 weeks of September are weak seasonally, hopefully post-opex can provide a bit of selling in order for me to get in stocks.
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