US 10Y 6%+ jump scared investors, triggering another selloff
Updated
After pulling back from 1.56% and consolidating for two days this week, US 10Y yield started to moving again!
From the daily chart, it's inevitable as the recent demand zone holds very well!
What I'm expecting is the below two scenarios:
1. yield keeps going up and investors are scared to flee the stock market. Bull market ends!
2. yield keeps going up and investors are concerned first, but eventually shrug off the yield hike. Bull market continues!
Personally, I prefer to the second one. By looking back and studying the history, bull market ended with fed rate hiking. US 10Y yield weigh on the market, but the decision maker is the target rate.
So, my overall asset allocation strategy is buying the dip. There is warning for sure, but it's not over yet!
From the daily chart, it's inevitable as the recent demand zone holds very well!
What I'm expecting is the below two scenarios:
1. yield keeps going up and investors are scared to flee the stock market. Bull market ends!
2. yield keeps going up and investors are concerned first, but eventually shrug off the yield hike. Bull market continues!
Personally, I prefer to the second one. By looking back and studying the history, bull market ended with fed rate hiking. US 10Y yield weigh on the market, but the decision maker is the target rate.
So, my overall asset allocation strategy is buying the dip. There is warning for sure, but it's not over yet!
Note
From the chart, it's clear that another higher high will be created.Note
Note
Look at the angle. It's accelerating. 
plan your trade and trade your plan
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.