It is amazing what the prospect of continued loose monetary policy can do for markets. The improvement in trading sentiment continues and another strong close on Wall Street suggests that traders are increasingly positive once more. I asked the question yesterday of how long this would last for and I remain sceptical at present, but for now we must go with the wave of sentiment. One indicator to watch which I continue to see as a gauge is the US 10 year Treasury yield. The yield unwound all of the Non-farm Payrolls related decline yesterday but as things stand still remains in a bearish trend, so is still a warning ... (full story)