The Mendoza Line

The Mendoza line is baseball jargon from the seventies for the supposed threshold for offensive futility of hitting at an average of .200.  Players can be above or below the Mendoza line (named for major leaguer Mario Mendoza, a lifetime .215 hitter).  There are several Mendoza lines on Wall Street currently…lines that when crossed get everyone’s attention.  For example, the Mendoza line for the ten year treasury appears to be 5%, above that and money flows from stocks to bonds.  Gasoline has a Mendoza line at $4 per gallon, above $4 and the economy begins to slow.  Bitcoin has seen somewhat of a Mendoza line at $26,000 and has made a recent significant rally to $34,000 plus.  For stock traders, the 200 day weekly average is at 3945, which is a line we do not want to see crossed.