LBBW's Karl Haeling noted that US....>

US TSYS/STOCKS: LBBW's Karl Haeling noted that US "market dynamics still

involved large net speculative short positions in Treasuries and overbought

trading conditions in equities. U.S. stocks have been overbought for weeks now,

and have yet to generate any meaningful selloff. If stocks do not breakdown

soon, the odds of another mini-melt-up would increase, and even if a 2% or so

downtrade were to occur, it would probably be used by investors as a buying

opportunity."

- He adds that "as the Treasury yield curve continues to flatten, the ability of

the Fed to raise rates more than two times without causing a true inversion

diminishes."