If managing markets were possible and I wanted to generate a stock market rally ahead of an important election, I would concentrate short positions in the bond market (DI reading below -60%) to trigger a reallocation trade from bonds to stock market. Of course,
the random walk hypothesis, so readily taught to nubile financial minds, tell us that despite numerous real world examples of "rigging" (hint LIBOR, gold, silver, various currency markets) price cannot be predicated. My response to that assertion is close the textbook and study the real world.
Chart: US Treasury Bond 20YR+ (TLT) And US Treasury Bond Diffusion Index (DI)
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