Another Look at the Fear Trade

The bulls are charging today. The S&P 500 broke through 1,230 this morning. Joey Bank ($JOSB) has been up as much as 12% today. This is a pretty stunning reversal from just a few days ago.

Once again, stocks are up while bonds, gold and volatility are down. As I described before, this is the unwinding of the “Fear Trade” which gripped Wall Street this summer.

Here’s a closer look at the Fear Trade:

Notice how closely gold ($GLD) and bonds ($TLT) moved together and both moved in the opposite direction of stocks.

Posted by on August 31st, 2011 at 10:40 am

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