200 Day Moving Average Fight Is On!
Who will win this contest investing fans? In the corner wearing inflation clad clothing we have the ten year US Government bond yielding 2.939% as of April 6, 2009. And in this corner we have the S&P 500 former heavyweight champion of the investment world, former 4 year 20 plus percent record holder in the 1990’s, fighting to make a comeback all the way back to the 200 day moving average of 1000. Ravaged in controversy. Beaten up in the press, ready to challenge the markets again to achieve its former glory.
But don’t be fooled folks. The formerly tame fixed income fighter is making a move against all odds. The Federal Reserve called this former heavyweight from the eighties all but dead. Look out, because the 200 day moving average is near. If the ten year bond can get out in front and supply enough fighting power in the form of risk free hot spots, then the fight is over.
Our guys think fixed income will get the 200 day moving average crown within the next month. In and around the 3.295% mark.
Good luck and enjoy the show.
"Greg Gilbert and James Simos" are registered representatives of FINRA member firm, "Infinity Financial Services."

