Bank stocks/bond thoughts
With the market throwing a party, it's worth noting that one sector has been underperforming the past couple of days -- major banks. Just to name one, WFC (Wells Fargo) is having a nasty day, recently down 1.36%% vs. a 0.16% gain in the Dow. What's behind the market action?
Well, Treasuries are struggling thanks to today's stronger-than-expected Empire Manufacturing index (from the New York Fed). Key resistance on the 10-year T-Note continuous future is right around the 108 20/32 level -- it held yesterday when the Producer Price Index came out "bullish" for bonds. Today's Fed minutes and tomorrow's Consumer Price Index figures for October could be the catalyst to roll us over here, or break us through on heavy volume. So fasten your seatbelts ... it should be one heck of a ride.