The latest auction of TIPS -- US Treasury debt with inflation protection -- produced a curiosity. Investors were willing to pay $105 for every $100 worth of inflation-protected notes.
The stock market indices had a volatile morning, opened with a sharp gap lower, rallied back sharply on the Nasdaq 100, but couldn’t match that on the S&P 500 and Dow, and rolled over to new session lows on the S&P 500. The NDX at that point, however, held support around 2105.
At times like this it is often a good practice to search for trades that have a low correlation to the market. Bond, commodity and international ETFs generally show a low market correlation, and Deron Wagner is monitoring them closely.
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