June 30, 2016

Part of the reason for Tuesday and Wednesdays big upward move has to do with the fact that hedge funds are auto rebalancing their portfolios this week because of the quarter end.  The 10 year Treasury is at 1.45 yield with means that the bond value have spiked nicely.  The auto rebalance is selling bonds and buying equities right now.  I expect an opportunity to buy at the start of Q3 next week.  The RSI dipped below 30 on Monday which indicated an opportunity to buy but we typically like to wait 3 days before acting on a big event like a brexit event.  I think we will get another opportunity to put some cash to work next week. 



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