Government bonds
US10Y Look for a 1D MA50 rejection.A month ago (August 21, see chart below) we argued why the U.S. Government Bonds 10YR Yield (US10Y) would go lower with the Fed having no choice but the cut the Interest Rates:
Well the Fed did it and cut the rates not just by -0.25% but -0.50%, initiating the new cut Cycle. Now let's look at the US10Y's price action on a smaller time-frame, namely the 1D.
As you can see the pattern is a double Channel Down, with the price trading below the 1D MA50 (blue trend-line) since July 03 2024. Tha
Five Market Correlations You Can UseAs a trader, I've discovered key market correlations that provide valuable insights. Here are 6 you can use:
1️⃣ US Dollar Index & Commodities (DXY & Commodities ): The US Dollar Index often moves inversely to commodities like gold and oil. Monitoring this correlation helps gauge potential moves in commodity prices based on the USD's strength or weakness.
2️⃣ S&P 500 & Volatility (SPX & VIX): The S&P 500 and the VIX (CBOE Volatility Index) exhibit an inverse relationship. A rising VIX indicate
US 10Y TREASURY: surprising 50 bps cutAlthough markets were divided on whether the Fed will cut interest rates by 25 bps or 50 bps at their September meeting, still, the Fed brought some sort of surprise by cutting interest rates more aggressively, by 50 bps. Considering Fed's dual mandate, to keep inflation at targeted levels and a stable jobs market, the analysts are now noting that, with the latest rate cuts, the Fed switched attention to the US jobs market. The US yield reacted to the Fed's decision in a mixed manner. Still, the
Recession Now Well Underway The yield curve is now fully inverted after reaching EXTREME levels. With that, we can conclude the recession has officially contaminated the financial sector.
Soon (likely before year end) we will see a significant selloff in equities.
Suggest: sell stocks & buy US Treasury Bonds.
US10y-US02y Yield Curve Reversion - Watch StocksUS 10y and 2y yield curve has reverted (i.e. is no longer inverted) and historically this has been a bearish signal for stocks in the months ahead.
Whilst stocks have continued to gain for a few weeks to months, ultimately there seems to always have had a precipitous drop to follow.
Keep a solid cash position and potentially look to hedge longs moving into October/November and onwards.
These drops have presented FANTASTIC buying opportunities, but ultimately you can only buy if you have dry p
Lower Rates Expected by 9/27/24Ahead of the Fed meeting Wednesday the market was pretty much 50/50 split on whether the fed funds rate would be cut by 25 or 50 basis points. After the 50bps announcement the counter intuitive move occurred, which was rates began rising, but this should have been a surprise. This was as straight forward "buy the rumor, sell the news" gets. Today however it appears the rates attempted to rally past 3.76% but failed.
3.76% happens to be the 50% fib level from the recent highs to lows and now we'
20yr yield breakout from C waveCurrently monitoring the 20yr bond yield. On this Chart. I've found a desc. Triangle breakout set up with a bullish wave count. Also notice the yield is at an oversold level for this time frame and below the cloud. I'm looking for the yield to retrace back up above the 5th elliot wave and close above 4.367at minimum before going higher.
Disclosure: I have puts on NASDAQ:TLT
Adapting Your Strategies to Stay AheadThis is how I embrace market adaptability and recognize (and navigate) changing market conditions! As a trader, I've learned the art of adapting my strategies to stay ahead and here's how:
1️⃣ Market Awareness: I continuously monitor market trends, economic data, and global events to stay informed. Recognizing shifts in volatility, sentiment, and liquidity (if not trading FX) is key to adapting. I make sure to have a baseline short and mid term outlook, so I can spot deviations which could sign
Chart Analysis of 10-Year U.S. Treasury Bond Yields
Based on current chart patterns and Elliott Wave Theory, it appears we are in Wave 4 of a higher-degree cycle for the 10-year U.S. Treasury bond yields. Wave 4 is typically a corrective phase following a strong trending Wave 3, suggesting that this phase may involve consolidation or retracement.
Key Levels to Watch:
38% Retracement (Lower Orange Line) : If yields bottom near this retracement level, it may indicate a potential support zone where Wave 4 could complete its correction.
61% Retr
US 10Y TREASURY: Fed on the moveThe US inflation data, posted during the previous week, clearly showed that the inflation in the US is slowing down. It is still above the Fed's target of 2%, but it opens the space for the Fed to cut interest rates. Markets are almost sure that the first rate cut will occur at September's FOMC meeting, which is scheduled for September 19th. The market positioned itself in accordance with expectations during the previous weeks, by decreasing yields on the US Treasury bonds. The 10Y US Treasury b
30-year US10Y trend vs. 10-year Bitcoin trend divergence vs. disparity
o1-mini:
**Understanding Divergence vs. Disparity**
- **Divergence** refers to a situation where two related data sets, indicators, or trends move in opposite directions. In financial markets, divergence often signals a potential reversal or shift in the prevailing trend. For example, if the price of an asset is rising while a momentum indicator is falling, this negative divergence may indicate weakening upward momentum and a possible downturn.
- **Disparity**, on the o
What if bonds are kinda important?Lets draw few parallel lines. Looks like cross of green supports shows start of the party and crossing red resistances means music isn't playing anymore. Could be coincidence. Looks like green support is coming. If we pierce it could be bullish. Unfortunately this time is different because of inversion. We will see.
Plotting the decline in ratesplease approximate the next number in the following number sequence: 1187, 850, 455, 266
...
Therefore, the next number in the sequence might be approximately 163
falls in rates are happening faster and faster. forecasts.org predicting 2% rates by april in the 30Y with the drop starting in oct/nov























