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10yr/5yr Spread vs. GSR

|Includes: GLD, IEF, IEI, SHY, SLV, iShares 20+ Year Treasury Bond ETF (TLT)

As a final pre-market post (got to go get my head on straight for today, which may include getting short some things) I leave you with the yield spread - GSR correlation chart.  I will not try to scare you with words, but right now in the midst of all this bullishness (esp. in the PM's) one would do well to exercise caution and ponder the possible nightmare implications of this chart.  Edit (8:22)  I forgot to mention, the nightmare scenario (amazing similarity to the run up to the crash of '08) was actually pointed out by blog reader Philippe, after I had posted this chart.  Edit (9:04)  Looking at the respective weekly MACDs, including those on the underperforming US indexes, I don't find much that I want to be short.  In fact I have found nothing.  Not yet.




Disclosure: No positions mentioned