Thursday, February 5, 2009

Out of Treasuries, and Back Into Stocks

Just at the moment that stock futures rallied this morning at 10:00 am EST, treasuries plunged. Many traders toggle back and forth between them. Often, if I want more feedback on the status of a particular trade in treasuries, I will quickly glance at what stocks are doing. If stocks show signs of reversal, then I know that shift in market sentiment will also affect my treasury trade.