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The Brazilian Wax

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And then this one time, at band camp, Fitch cut Brazil's foreign currency debt rating! This is, of course, is in front of the pending electoral runoff so the chatter will likely get louder as we edge towards this weekend's vote. Talk about three sheets to the wind, Ma'am, somebody tell Stiffler's mom!

Shifting our attention back to our homeland, treasury's came for sale and (shocker) the equity tape got a bit of a lift. As discussed, bonds really aren't my bag, baby, but I have been monitoring their price action as a tell for our tape. We spoke of the "structural" implications of asset allocation this morning and it feels like that continues to be in play. I am not gaming it, mind you, but I am certainly monitoring it. It must be that time of year...there are Bonds everywhere!

The internals continue to be skewed 3:2 in favor of the sellers but the futures buying is pulling up the individual names. We're not seeing much in the way of flows, as the cash desks are relatively quiet (marginally better for sale) and the action is on the program side. It's always difficult to game this type of action (futures led), but we can always try to read the tea leaves-and the biggest leaf right now is the government bond market.

The financials are starting to test our upside levels again but other than that, it's deathly quiet and I'm anxiously awaiting my chicken noodle soup. This is no time to be sick and I'm quite aware that there's much work to, so I'm fighting it off best I can. Hey, maybe if I have the flu I won't have to go in for the quadruple wisdom yank Friday.

Ya think?



Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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