A fellow Minyan pointed out that the bond market's decline today could be a reason for the poorer NYSE breadth numbers today vs. Wednesday's. The view is that a negative bond market creates havoc in the Closed End Bond Funds and Preferreds due to interest rate sensitivity.
He had a good point so I checked with John Brooks at Lowry's Reports because they track Operating Companies Only (OCO) on the NYSE to see if we made a mountain out of a molehill. We found that Wednesday's readings were even more dramatic than we originally thought - the ratio for OCO Wednesday was actually 9.4-to-1, vs. the total NYSE reading of 4.8-to-1. We will only know today's readings after the close.
That is how we do our research. We first must be willing to accept that our view might be wrong, and then try to prove it wrong. It is only through this process that we can have courage of conviction during periods where the market's near-term moves create havoc with intermediate-term time frame.
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