Things calmed down a bit on Wall Street Thursday.

Perhaps as long as China is cutting rates and Europe is buying asset-backed securities – and as long as the U.S. maintains its policy of zero percent interest rates – investors can ignore traditional risk in stock assets.

A declining yield curve has been one of our main reasons to support the strong economy/strong stock market (and cautious gold’s price) stance for about 1.5 years now.

In a stunner, the bond and fund worlds go nuts as the Bond King moves from PIMCO to Janus and JNS rams upward by 32%.

The Continuum ™ (monthly 30 year yield) is bouncing hard today after dropping deep into the support zone we have been noting for months after inserting another red arrow at the peak of the Great Rotation hype (GRH).