Perhaps the most consistent message seems to be the weakness expressing itself in the bond market, as long Treasury bonds such as the Vanguard Extended Duration ETF (EDV) and iShares Barclays 20+ Year Treasury ETF (TLT) breakdown on rotation into equities from fixed income investors.
The bottom line? The most recent extreme winners have no major consistency, except in that the areas which are rallying are those which are not highly focused on by the mainstream investor. This appears to be bullish, as it suggests money is comfortable taking risk in areas outside low beta parts of the investable landscape.
On the laggards side, a mix of currencies and bonds seems to suggest continued improvement not just in the U.S. dollar on a relative basis, but also U.S. stock markets which have held up well following the fiscal cliff deal. Risk-on, and in particular risk-rotation, continues unabated...at least for now.At the time of publication the author held no positions in any of the stocks mentioned. Follow Michael Gayed @pensionpartners This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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