friday night trading, page-118

the black snake in the woodpile, as me poppy use-a-ta-saaay, is interest rates on the 10yr bonds. They broke the downtrend line and the 200ma this week, headed north with a target of 5%. This suggests several things: one, inflation expectations have also broken out, two, the cost of money is rising, three, stocks don't like high cost credit and four, risk appetite has returned. Need to do a study abot how all these factors work together and what are critical levels. At what level of rates and/or inflation will any recovery get squashed?