TED Spread Jumps
Maybe I'm spending too much time with this TED spread thing, but it's been interesting following it lately - at least for me.
So now it's jumped up, after sinking a bit and kind of wallowing around. In fact, it's jumped up back over its 50-day moving average - which remains above the 200-day MA.
If you remember, when it sank below the 50-day, I did say I'd be waiting to see if it turned around or not - and now it has. I'm thinking now that it's worth re-focusing on this spread to see what's going on. Again, in the past, when the TED spread has risen sharply, we saw liquidity dry up, credit tighten and the stock market tank. It's worth keeping our eye on this little-followed indicator.
So now it's jumped up, after sinking a bit and kind of wallowing around. In fact, it's jumped up back over its 50-day moving average - which remains above the 200-day MA.
If you remember, when it sank below the 50-day, I did say I'd be waiting to see if it turned around or not - and now it has. I'm thinking now that it's worth re-focusing on this spread to see what's going on. Again, in the past, when the TED spread has risen sharply, we saw liquidity dry up, credit tighten and the stock market tank. It's worth keeping our eye on this little-followed indicator.
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