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Fast Money Chartology – Untangling Mixed Market Signals

Wednesday, 10 Jun 2009 | 6:07 PM ET

Don’t get bogged down with complicated formulas. To see where the market goes next just consult a very simple chart!

During the Fast Money's Halftime Report, technical analyst John Kosar of Asbury Research revealed a fairly simple and surprisingly accurate way to predict where stocks are heading – check out bond yields.

Chartology: Rising Rates
The Fast Money guys take a look at rising rates.

According to Kosar, the S&P 500 and the 10-year note yields have been trading in tandem for about two and a half years. See for yourself!

Investors are looking at yields as a barometer for economic activity, he said.

In other words, the stock market has been looking to the bond market to tell if things are okay.

And since it's been going on for a while, it stands to reason that the way yields react over the next few weeks should give investors a good idea of what’s next for stocks.

We thought you'd find that little tidbit useful!

  Price   Change %Change
S&P 500
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Trader disclosure: On June 10th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Is Long (USO), (AGU), (SKF); Najarian Is Long (AAPL) Call Spread; Najarian is Long (FCX) Calls And Puts; Najarian Is Long (JPM), Short (JPM) Calls; Najarian Is Long (PALM) Call Spread; Finerman Is Long (NOK); Finerman Is Short (USO); Terranova Is Long (RIMM) And Short (RIMM) Sept. Calls; Terranova Is Long (MS) And Short (MS) July Calls; Terranova Is Short (XOM) Call Spread; Terranova Is Short (FCX) And Short (FCX) Puts

Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV); Virtus Investment Partners Owns More Than 1% Of (ABD), (CAL), (CLB), (DLR), (EPR), (EXR), (IGE), (MEE), (DBC), (DBV), (DBA), (SKT), (UA), (WBMD); Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co; Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights

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