TSLA - Weekly Inflection PointDaily is winding up to an inflection point, while the weekly is getting close as well. I'm favoring the bearish break; but there is a chance for a bullish reversal- so time will tell. What I can say is that we're approaching a conclusive point in time that will send price with signifcant momentum in either direction. When I look for an inflection point I watch for consolidating momentum. In turn I watch for breaks that releases the built up energy.
Previous Analysis:
T-bonds
TMF long trade setup 3X Bullish TreasuriesTMF on the 4H chart is set up at the bottom descending support trendline of a symmetrical
triangle in the approach to the apex. Price appears ready to reach for the upper descending
resistance trend line and the Echo Indicator ( Lux Algo ) makes that forecast. Current
ambiguities in a rate cut soon upcoming will make values of Treasuries a complicated matter.
I am taking a long trade targeting 54 with a stop loss at 50 in consideration of the triangle
pattern. I have existing positions in TLT.
Short term yields still weak, longer term reversedWhat a difference 11 hours makes.
The 1 & 2 Yr #Yield are STILL under resistance & are weakening.
10 & 30 Yr completely reversed once markets opened. But this tends to be normal, pretty frequent.
This is why waiting for a CLOSE is of utmost importance. IF we CLOSE here, last night's thinking is NO MORE and the best plan of action is to WAIT.
TVC:TNX
Goldaholics Anonymous Pour yourself a glass of Goldschläger and let's review the 12 steps before diving into this.
1. We admitted that we were powerless over the Fed -- that our balance sheet had become unmanageable.
2. Came to believe that a Power greater than our central bank could restore us to solvency.
3. Made a decision to turn our fiat over to the care of sound money, as we understood it.
4. Made a searching and fearless inventory of our finances.
5. Admitted to Peter Schiff, Lyn Alden, and Pomp the exact nature of our wrongs.
6. Were entirely ready to have big, fat Gains.
7. Humbly asked to avoid getting short squeezed.
8. Made a list of all the naysayers about to be harmed.
9. Sent direct messages to them to gloat in victory.
10. Continued to count our gains and polish our bullion.
11. Sought through fundamental and technical analysis to improve our entries and exits.
12. Having had a financial awakening as the result of these steps, we tried to carry this message to other goldaholics, and practice these principles in all of our trades.
Macro Fibonacci
Below we can see the magic of Fibonacci extensions, measuring the last macro bull run to the 2016 low.
Zooming in a bit, it is clear that these levels attract attention. Each one of these fibs acts as a step in the staircase. All we need to do is look at volume and price action to validate each level. The smart money had their sell orders at the 0.618 Fibonacci extension. The 0.5 could not hold which indicates that the next level down will be tested. Watch for heavy volume to come in there near the 0.382 level.
In the U.S. stock market and many other developed financial markets, about 70-80 percent of overall trading volume is generated through algorithmic trading.
Historical Price Action
Looking back to the last bull run there are a few simple patterns to watch for...
1. Weekly MACD flailing around above the zero level.
2. Mark the down trends and wait for the break.
3. Price action is above the 20 Week EMA.
Trading Setup
Using historical price action the trading setup becomes clear...
1. Weekly MACD is flailing above the zero level.
2. The down trend line is clear. Wait for the break.
3. Wait for 20 Week EMA support.
Now, the targets are the Fibonacci levels above, and the ghost bars look reasonable, however, it would be wise to take a look at what exactly is driving Gold on this path.
The U.S. Dollar
The Dollar index inversely pressures Gold prices so this is worth noting.
1. Momentum is shifting bullish as a bullish MACD divergence reveals itself on the daily chart.
2. This recent move was the 3rd wave down which often precedes a reversal.
3. The index is at the bottom of this future channel.
As this index recovers back towards the 200 Week EMA, it will surely scare the metals market. However, the macro downtrend is only on it's first wave down. From a technical standpoint, the second wave is often the deepest as panic sets in from the failed recovery.
Treasury Yields
Yields recently had a similar bullish MACD divergence with a very weak recovery that followed. The trend is still clear and it's highly likely to roll over as it timidly approaches the trendline in the coming months. Gold has been riding along side Bonds so this should continue to drive up prices. Depending on the severity of falling yields, it could trigger temporary crashes in the metals. But longer term, buying the dips is the way to go.
Trading is risky. Don't do it.
Long
Bullion: Gold, Silver, Platinum
Equities: GDX, PHYS, CEF, SLV, RIO, SPPP
Futures: (Not yet)
1 YR US BILLS - WEEKLYSeeing a weekly momentum shift forming, expect major trend change.
Couple of scenarios, Economy could break and fed allows inflation to creep up while easing on rates, If they reduce reverse repo rates then yields will drop as money market funds buy 1 yr bills on the open market again.
Otherwise they might have to increase rates if inflation continues to weigh heavily on the economy with prices shooting up too fast.
1D
1W
US10Y Expect to see a new High.The U.S. Government Bonds 10 YR Yield has turned bullish on its 1D technical outlook (RSI = 60.193, MACD = 0.003, ADX = 38.653) as it crossed above the 1D MA200 again, with the 1D MA50 following right under it, with the two on an emerging 1D Golden Cross. We have anticipated that rebound from the HL of the Channel Up on our previous idea and our medium-term target (TP = 4.600%) is intact.
If the 0.786 Fibonacci level breaks, we will buy after the first 1D MA50 pullback. The 1D RSI is also posting a similar early rally sequence to April-May 2023 and December 2022-January 2023.
See how our prior idea has worked out:
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DXY Seems Likely to Show Some Mid-Term StrengthDXY has pulled back a lot as US bonds have ripped to the upside, however it would appear that the Yields may be setting up for a short term bottom which would result in the DXY coming back up. This would align with the Euro coming back down, but I'm not convinced the move up in DXY will be long-lasting, however I do think it will be notable enough to initiate some Bearish Reversals in Gold, BTC and the SPX and the completion of a potential Bullish 5-0 on the Euro which would take it to the 50-61.8% retrace down at around $1.08, before continuing to the upside.
US10Y Touched its 1D MA50. Time to rebound?The U.S. Government Bonds 10 YR Yield (US10Y) is expanding the new Bullish Leg, which we gave a buy signal on last time (January 24, see chart below):
Yesterday it touched the 1D MA50 (blue trend-line for the first time since the February 05 break-out. During the previous leg of the 1.5 year Channel Up, the 1D MA50 held all the way until the formation of the new Higher High.
As a result, we are bullish as long as it closes the 1D candles above it, with our 5.000% Target intact.
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IEF: Holding on to an Established Trendline at the 0.382 RetraceThe IEF (US 7-10 year Treasury ETF), has held on to the 0.382 Fibonacci Retrace aligning with a Long-term and Established Trend line and the 200-Month Simple Moving Average with high amounts of MACD Bullish Divergence and a move above the 0 line on the Oscillators. All of these factors point towards lower yields in the 7-10 Year Treasuries and an increase in par value on the bonds themselves. Bullish setups can also be found in other duration ETFs such as the TLT and SHY representing the 20 Year and the 1-3 Year Bonds.
I suspect that all this Bullishness on Bonds will come with the Uninverting of the Yield Curve, which may align in commodities blasting off much higher in the short term, but in the long term could result in the resetting of the Bullish Cycle in Equities and Commodities alike.
TLT: Piercing Line on the Quarterly Chart Signaling Lower YieldsTLT (The 20-Year US Treasury Bond ETF) has recently completed the measured move of the Ascending Broadening Wedge Breakdown and has now confirmed a Piercing Line on the 3-Month Chart while closing above the 0.886 Retrace. We can also see that the RSI has begun to break out of its downtrend and these combinations of variables seem to point towards the TLT reversing the overall downtrend which could lead to a major move up towards the 50-61.8% retraces between $130 and $143 this would come with bond yields falling off significantly and may also be a sign of investors seeking safer investments over the coming months.
Long-duration bonds are cheap. EDV & TLTInflation has come down down, FED is planning to begin cutting rates this year. Interest rates are the highest in the US of any developed country. Long term bonds especially are a good investment here. EDV and TLT both track them and are currently paying a good yield too. I expect these to double from current prices over the decade. The next time things break and the FED is forced to cut rates more aggressively, these will be up huge
Short-Term Bond Yields are Setting up for a Major CorrectionThe SHY ETF is an ETF that holds 1–3 Year US Treasury Bonds and as the yields have gone up this bond ETF has declined. However, in recent times it would seem that this ETF is now trying to confirm a Double Bottom with the test of the 21-week SMA, if it holds we could go p to about $85 which would put a lot of downwards pressure on the bond yields which should align with a decline in the US Dollar and a rise in the Australian Dollar. I suspect the move will be fast and short-lived, but dramatic all the same.
#SA10YGOVYIELDS looking to start a move back to top of range?The South African 10 year bond yield has found support off the intersection of the 200dma and the previous change of polarity point between 9.55%-9.65%. Momentum seems to be shifting up which could see us move back to the top of the range at around 11.16%.
Time to flip short $TLT againWe made good money shorting NASDAQ:TLT into the summer down to the initial target I had of $88. Then we flipped long again and I exited my longs earlier this month on Dec 7th. Now, as you can see from the first chart , we've come up against resistance and I think it's time to flip short again to retest the lows.
How low we go is TBD, but I think this move could go to at minimum $95 and at maximum retest, or barely sweep the lows.
I bought some puts yesterday with a strike of $97 for a few months out.
Note: There is a possibility that we get one more retest of the highs before it starts falling (if this happens, I'll add more to my position).
TLT: Double Bottom at the 0.382 Retrace with Bullish DivergenceSome weeks ago TLT was trading within a Falling Wedge and Double Bottoming at the 0.382 with Bullish Divergence on the Hourly Timeframe and from there rallied to hit its 0.618 Profit Target. Since then, it has come back down just below the level it started at but in doing so has yet again formed Bullish Divergence near the 0.382, this time on higher timeframes. If the TLT were to start bottoming here, it would potentially be the start of an even bigger double bottom than the last one and could result in TLT testing even higher upside retraces such as the 0.886-1.13 which would take it to around $100
CRE & Small Banks coincide with each otherSmall banks account for about 70% of #commercialrealestate.
Small #banks are considered those with assets less than $10B.
We've been bearish CRE for a long time. We believe that this sector will likely not get better anytime soon.
#interestrates are still holding fairly strong. They are at banking crisis levels or higher.
TVC:TNX
Treasury Yields look ripe for further movesCurrent state of the short and long term #Yield.
The 1Yr is underperforming against the 2Yr yield. However, it looks like it wants to push higher.
10Yr vs 30Yr
The 10Yr is performing lil better than 30 but.......
The 30Yr has a BULLISH short term crossing over longer term moving avg, RSI also looks strong. IMO yields are looking good. Seems like there is still treasury selling pressure.
US10Y: Key Moment for Stock MarketHi Trader!
U.S. Treasury yields climbed on Wednesday after an unexpected rise in UK inflation last month and stronger-than-expected U.S. December retail sales data strengthened the case that interest rate cuts will not be as imminent as the market expects. The UK inflation print, as well as more push-back from European Central Bank officials on Wednesday against interest rate cut bets, pushed European bond yields higher. Treasury yields, which move inversely to prices, followed suit, with the uptick gaining momentum after Commerce Department data showing retail sales in December grew by 0.6% month on month, above the 0.4% economists had expected in a poll. Weak demand for a 20-year bond auction also helped lift yields later on Wednesday.
💡 "December retail sales reflect an economy that, although slowing, continues to be underpinned by consumer spending," said Quincy Krosby, chief global strategist for LPL Financial. "For the Federal Reserve, slower consumer demand would help propel inflation to decelerate at a faster pace; however, with consumer confidence gaining momentum, the economic landscape remains on solid ground," she said in a note.
🔴 The short-end of the yield curve, more closely linked to monetary policy expectations, led the move higher. Two-year yields rose about 13 basis points to 4.354%, their biggest daily increase in over a month. Benchmark 10-year yields US10Y added about four basis points to 4.104%, their highest since Dec. 13.
🔴 From a technical perspective, chart shows a bearish impulse structure forming, and this technical bounce could form the second corrective leg (wave 4) before another bearish swing (wave 5). That said, the key resistance is around 4.23, and a rally above it could invalidate the technical structure.
We correctly predicted the surge in inflation last year, but now the geopolitical context has become more complex:
(Click on chart below)
In conclusion, if this analysis is correct, Stock Markets (SP500, Russell, DJ,...) should see another rally with potential new High Top...
Trade with care
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Looking at short & long term yieldsGood Morning Update
Looking at the short & long term Bond Yields.
Short term (3M & 6M) yields are trading above bank crisis levels.
The 1Yr & 2Yr #yield are underneath the crisis levels.
The 10Yr is currently at those levels & 30Yr is above said levels.
Makes one think....... How much longer can #banks support these levels?
CRYPTOCAP:BTC AMEX:GLD AMEX:SLV
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Digesting longer term data = 10 & 30Yr #yield.
Higher lows
Bullish moving average crossover > circles
Moving avgs trending higher
Forming small uptrend
2nd pic = WEEKLY
Back above previous uptrend
Trading under moving avgs
TVC:TNX #Gold #silver #BTC
$DXY, long and short term rates looking betterGood Morning! Let's get it done!
Look at #yield for 1yr - 30Yr. What do you see?
Last week we said they looked 2b bottoming out a bit.
Do any of these look weak to you?
RSI above halfway point, solidifying the possible bottoming process.
Short term
#Interestrates keep testing the top part of the white line. The more something is tested the weaker it becomes and the higher the chance of it breaking through.
Long term
Forming higher lows.
TVC:DXY
TLT: Falling Wedge Double Bottom at .382 with Bullish DivergenceThe TLT looks like it's trying to form a Double Bottom at the 0.382 Fibonacci Retracement, it is also Bullishly Diverging at this level, if it holds up I think it could go up to as high as $96 near the 200-period Simple Moving Average which would also fill the gap. From there I'd think it could continue back down.
I will be selling weekly puts around the lower 90 strike and buying weekly calls at the same level.