Much to my surprise the brilliance of Mr. Market needed to push an already VERY extreme dislocation in prices even further…so the markets rallied and rallied in the face of ever increasing internal stresses. I will be posting quite a few charts…nothing has changed from last weekend in any significant way except for the fact that the markets are more stretched and dislocated than before. How the risk markets can rally in the face of the fact that many European sovereign bonds are back into stratosphere yields, is something I can not answer - though I think the centrally planned market dynamic probably has something to do with it in addition to many people being over leveraged on the short side.
And NO the TBill yield persistently effectively at negative yield is NOT bullish…all in all, this Christmas especially, the Masquerade is back in full regalia.
Merry Christmas.
