Markets Will Become Uncomfortable With Higher Yields: Hirst

Seeking AlphaToday's Market | Market OutlookMarkets Will Become Uncomfortable With Higher Yields: HirstOct. 8, 2020 11:09 PM ET|| Includes: DDM, DIA, DJI, DOG, DXD, EEH, EPS, EQL, FEX, HUSV, IVV, IWL, IWM, JHML, JKD, OTPIX, PSQ, QID, QLD, QQEW, QQQ, QQQE, QQXT, RSP, RWM, RYARX, RYRSX, SCHX, SDOW, SDS, SH, SPDN, SPLX, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SQQQ, SRTY, SSO, SYE, TNA, TQQQ, TWM, TZA, UDOW, UDPIX, UPRO, URTY, UWM, VFINX, VOO, VTWO, VVby: Real VisionReal Vision Long/Short Equity, long-term horizon, short-term horizon, Newsletter ProviderWww.Realvision.Com.cls-1{fill:#024999;}SummaryHistorical resistance levels for the rallies off the March lows keep getting steamrolled by QE, so retracement levels may or may not turn out to be relevant.
The steepening of the yield curve in the U.S. likely has to do with anticipation that there will be more fiscal stimulus regardless of who wins the election.
As U.S. inflation is picking up, Europe’s is declining and that’s a problem; if the euro starts looking like a deflationary currency, the ECB is likely to fight it.

Markets are in a no man’s land where these levels could either hold on the upside or roll over, Roger Hirst said during today’s Real Vision Daily Briefing.
Hirst said it is difficult to predict where we go from here because the historical resistance levels for the rallies off the March lows keep getting steamrolled by QE. If the S&P reaches the 62% retracement level soon, it may or may not turn out to be relevant.
“It’s still a good point to think about putting some shorts out, but with very tight stops because there’s potentially more fiscal and more monetary coming in the not too distant future,” Hirst said.
Hirst also discussed the steepening of the yield curve during today’s briefing, which he believes has to do with the anticipation of additional fiscal stimulus on the way regardless of who wins the election. The question now is what the market’s... Read more