Inverse Head & Shoulders Reversal Pattern ConfirmedAn inverse Head & Shoulders has confirmed the neckline with a price target of 127 by the end of June.
Last Jan I posted this recession projection for TLT
And then I projected the spike in yields on the 10Yr right before the Aug Rug Pull from Jerome Powell.
Finally catching the double bottom reversal at the bottom at the lows of 91.85
Bond bears are calling this reversal a trap/mistake suggesting a Mistake in 2 rate cuts in the 2nd half of 2023.
I only monitor TLT for technical analysis and to confirm / invalidate trends for the S&P 500.
Not financial or trading advice.
T-bonds
US10Y Approaching the 1D MA50.The U.S. Government Bonds 10YR Yield (US10Y) is on a 3 day rebound following a hit on the 1D MA200 (orange trend-line). The 1D MA50 (blue trend-line) is the natural Resistance, but if crossed, we can expect a long-term peak at the top (Lower Highs trend-line) of the Channel Down pattern that started on the October 21 High.
A closing below the 1D MA200 first, would largely be a long-term sell signal that could break below the bottom (Lower Lows trend-line) of the Channel and target the 2.510% Support (August 02 Low) and make contact with the 1W MA100 (red trend-line), which has been our long-term bearish target since October.
The 1D RSI can also offer sell entries on its own Lower Highs trend-line.
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Short to C wave, but im a buyer of the DipsI'm both a bull and a bear on the 20yr treasury etf (TLT).. I created a long term buy analysis basis on the bullish cypher pattern I see forming at the conclusion of D leg. I like the yield of the 20yr treasury bond which is over 4%.. The dividend yield on the 20yr Treasury etf is 2.49% currently, and I expect it to rise. The dividend is paid monthly. I see the yield rising as the price of TLT declines . I see the dividend yield potentially rising to 4% , that would be an outstanding monthly yield for long term holders. You can also sell puts here, or calls to generate revenue. Long term buyer, and Call writer (which will lower my cost basis, and return use the upfront premium to buy more shares of this etf, further increasing the yield and dividends)
Include $TLT in Your Portfolio 🪙Bonds are seriously underperforming stocks and TLT has been on a downtrend since the onset of Covid lockdowns when global governments printed massive amounts of money to prop up the equity markets. In Oct 2022, TLT broke below the 2014 low and then recovered nicely. I believe allocating like 10% in treasuries will be beneficial with the outlook of 2-4 years as we can expect the world to start to work around the sticky high interest rate environment.
Long EMLC VanEck JPMorgan EM Local Currency BondEMLC is bumping up downward sloping resistance line. Should it breakout I'm looking to accumulate shares of EMLC - VanEck JPMorgan EM Local Currency Bond ETF. These bonds are denominated in local EM currency and should benefit from a falling dollar. I also like the 6.85% yield.
TLT - US 20 Year Treasury SELLOFF Treasury yield is the effective annual interest rate that the U.S. government pays on one of its debt obligations, expressed as a percentage. Put another way, Treasury yield is the annual return investors can expect from holding a U.S. government security with a given maturity.
Treasury yields don't just affect how much the government pays to borrow and how much investors earn by buying government bonds. They also influence the interest rates consumers and businesses pay on loans to buy real estate, vehicles, and equipment.
Treasury yields also show how investors assess the economy's prospects. The higher the yields on long-term U.S. Treasuries, the more confidence investors have in the economic outlook. But high long-term yields can also be a signal of rising inflation expectations.
Treasury yields are inversely related to Treasury prices.
Treasury yields can go up, sending bond prices lower, if the Federal Reserve increases its target for the federal funds rate (in other words, if it tightens monetary policy), or even if investors merely come to expect the fed funds rate to go up.
An inverted yield curve on which the yield on the 10-year Treasury note has declined below that on the 2-year Treasury note (to cite just one popular benchmark) has usually preceded recessions.
A rising yield indicates falling demand for Treasury bonds, which means investors prefer higher-risk, higher-reward investments. STONKS GO UP, FORCING THE FED TO REMAIN HAWKISH! A falling yield suggests the opposite.
$SPY Monthly 9/21 Death Cross - WARNINGThe only other time the 9EMA crossed under the 21EMA on the monthly was the 2000 Dot Com & 2008 Great Financial Crisis. (Noted with the blue + symbols & down arrows). Each time, the RSI was near 50. Each time, the ADX indicator has been lower than the preceding level (in the 20s, WEAK - NO TREND. The massive drop in monthly volume should be noted. When the next BIG DIRECTIONAL MOVE comes, it'll be accompanied by VOLUME & a rise in the ADX (to STRONG TREND). If this 3rd time ever 9/21 DEATH CROSS is like the other two, a MASSIVE WATERFALL SELLOFF could occur. If such an event occurs, FEAR WILL SPREAD causing a MASSIVE VOLATILITY SURGE. I'm HEDGED for crisis with $UVIX $UVXY. My suspicions point toward a DEBT BUBBLE IMPLOSION. Protect your #kingdollar. GL.
US10Y Hit a 9month support. Critical moment for the market.The US10Y hit today, in the aftermath of the 6.5% U.S. CPI, the Higher Lows (HL) Support line that has been in effect for 9 months (started on March 7th 2022). With 1D technicals bearish but not heavily (RSI = 42.655, MACD = -0.035, ADX = 36.284), the trend is undecided at the moment, at least on the short-term.
Though we see a clear Channel Down since the October 21st 2022 Top, the price can give a short-term bounce back to (and above) the 1D MA50 and the top of the Channel. Eventually, with the macro-economic outlook on the bond market changing, we believe the bearish trend will prevail on the long-term, with our immediate target being the 1D MA200.
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US Bonds - Hitting Key Resistance Levels - 2023 Target $104-$105US Bonds have been channeling in a perfect downward parallel channel since Mar 2022. It recently hit a key resistance level at $132 and started to pull back.
I expect the pull back to continue till $123 and expect a short term technical bounce up to $128.
Higher Fed interest rates will continue to have pressure on the Bonds and overall economy. I expect the bonds to go lower in 2023 and bottom out at $104.
$104 is also measure Fibonacci level 1 target.
Trade of 2023? TLT! Big Boring BondsWhat is the big trade for 2023? I think it is going to be BONDS. This is my thesis on going long NASDAQ:TLT to start 2023. I walk through the reason that when yields go up, bond values go down (as did TLT) and why I think that TLT is likely to go back up over the course of this 2023 and beyond.
Using DXY - Bond yield Divergence correctly.A really strong indicator for future price action of say DXY for example can be the divergence between it and 5y, 10y and 30y bond yields. Forex markets are driven mainly by interest rates and so if we take a close look at the bond yields we can see them making lower highs whereas DXY is making higher highs. As said, DXY will also follow the bond yields and so we would expect DXY to drop. This SMT Divergence concept coupled with economic events could make for a great trade idea.
Are the 2 and 10 year bond markets calling JPOW's bluff?In this video I cover the divergence between the 2 and 10 year treasuries and the recent FOMC press conference language. Jerome Powell is promising one thing (continued rate increases), while the bond market seems to be claiming otherwise (Fed pause incoming). Who's right? Let's take a closer look.
Treasury Yields Show Signs of a TopTreasury yields have been a major driver of sentiment since early 2022. The 10-year Treasury yield jumped above 1.75 percent at the beginning of the bear market last January. But now it may be showing signs of a top.
The first pattern on today’s chart is the falling trendline along the highs of October, November and December. Notice how TNX began the New Year (and a new week) by sharply dropping from this resistance.
Second, the rejection occurred at the 50-day simple moving average (SMA). Interestingly, this is different than we saw in August, when the yield leaped above the SMA. It’s also noteworthy that the SMA has been falling since early December, another potential sign of the trend reversing lower.
Next, consider the longer-term levels. TNX peaked at 4.32 percent in 2008 and 4.014 percent the following year. Given the recent price action, that general zone seems to be holding as resistance.
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BONDS YIELD PREDICTION!!!!! US02YDESCRIPTION: In the chart above I have provided a macro analysis for 2 year bond yield on the Daily Timeframe.
POINTS:
1. Since the beginning of this upward trend on January 2022 we have seen that bonds and the overall market are said to share an inverse relationship but during pivotal moments that has not been the case as you can see that the stock market has risen along with bonds and vise versa .
2. Deviation in SUPLY & DEMAND POCKETS is clearly shown to be every 1% RISE IN YIELDS . (Refer to BLUE & ORANGE Horizontal Lines)
3. Before entry is made into a new DEMAND POCKET price action has a distinctive pump that has occurred several times. (Refer to white lines between SUPPLY & DEMAND POCKETS).
4. Predicted rise was formulated by using the average of previous last two pumps of +40.92% and +54.21% = +48% when rounded.
5. Average does in fact coincide with previous point of resistance when bond yields rose to 6% in the early 2000's. (A POINT THAT I WOULD CONSIDER TO BE A PIVOT POINT)
6. When you observe MACD we can also conclude that downward pressure is looking for relief like in past occasions.
SCENARIO #1: Bond Yields continue to rise and follow uptrend into early 2023 which can then signify that a market bottom is yet to be confirmed.
SCENARIO #2: Bond Yields break crucial SUPPORT OF 4.000% and will invalidate current setup. Possibly being followed by capitulation in the stock market since falls in yields seem to be more closely tied to falls in the overall market than the inverse relationship.
TVC:US02Y
Bonds to Start the YearAs I mentioned in my 2022 EOY letter... with actual meaningful interest rates now a thing bonds can return yield. While bonds issued in the last decade (or two) are getting hammered in value as higher rate bonds are being issued presently. I think the market is pricing all of this in and if we do get a tapering of rate increases we will see bond values increase.
TLT NASDAQ:TLT has a good setup for a TS recapture on the Weekly timeframe from last week. The trade going into 2023 is for the October 2021 low on TLT to hold and move up over the year to recapture 135.
2Yr Yield creeping up slowly$TNX is closed atm but if the 2yr is an indication it may open higher
We re-entered long yield after FED day in DEC.
Sold puts on $TYO & bought common
Didn't go heavy because Monthly chart is a tad tough.
Weekly 2yr trading decently above avg's again
So far so good.
We were bullish on STOCKS but that was late Oct/Early Nov, then went bearish for a bit, & are now NEUTRAL.
EDIT:
Keep in mind that in BULL MARKETS items can remain OVERBOUGHT for long periods of time.