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Jaws of death

Jaws of death is a term coined by trader Larry Williams that describes when a situation when equities are rising while bonds are weakening.

Expanded Definition

Williams observed a phenomenon that happens when equities and bond prices diverge. According to him the disparity (which he calls the jaws) between the two tends to snap shut, hence he called the entire phenomenon the jaws of death. Usually the snapping shut action is achieved by a rapid and sharp drop in stock prices according to his model.

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