The Best Explanation of The Bond Market You're Ever Gonna Get12 Month US10Y Bollinger Bands between 2.5 and 2.9 Standard Deviations away from a moving average model greater than 4 years in length, preferably exponential. I haven't optimized this to perfection, but it's close enough to give you the basic idea.
The bond market is just a simple oscillator emerging from a complex system and simply does what every other very large and complex system does. It has a trend around which it travels but in decades and centuries not years. It isn't complicated, but it is extremely slow.
There are 2 phases and a 5,000 year long trend. It goes up. It goes down. Over the course of centuries it declines. In the down phase, it stays below trend and does the exact opposite in the opposite phase. A kindergartener can trade this thing.
Currently the phase is turning over from a down phase that lasted from 1980 to 2020, and entering into a new up phase that will most likely last for 3-4 decades.
Trading it: buy secondary market long duration government bonds at the bond yield 3 standard deviation line and sell at the trend. Repeat for the next 30-40 years. Easy peasy.
Tbills
US10Y BazookaOn US presidential election day, as a Donald Trump victory began to look certain, US Treasury yields experienced a startling increase in the span of a few hours. Truly extraordinary.
But is this the start of a new trend or just an acceleration of the old trend? The US10Y was so far rejected at resistance it was preordained to test. Maybe nothing has changed and we go down from here?
US10Y Most Deviated in History. Except for the Great DepressionThe percent deviation from model of second order measurements is one of the most useful metrics for timing the Bond Market. Shown here is the percent deviation of the 30 period close Monthly RSI from its 60 Month Simple for the US 10 year Treasury Bond. The only time in history it has deviated this much was the Great Depression.
TLT (Debt Supply) Goes Up With Federal Borrowing (Debt Demand)Here's your edge: the TLT blasts off when Government borrowing blasts off, a simple case of supply and demand.
The Federal Government borrowed 2.2 Trillion USD in the last 12 months, data that has been added to Bloomberg Terminals but not here on Tradingview or on FRED. I bring you a piece of the cake, friends.
SOURCE: x.com
TLT +50% Every Time This Happens and It's Happening NowTLT/SPX Monthly RSI (8 Period Close)
It makes sense to analyze the most common institutional portfolio allocation (Equities and Bonds) rather than Equities or Bonds separately. Most investors focus on Fed Funds, unemployment, the business cycle, rates, to analyze the bond market. But those metrics are poorly correlated to returns at best. When you focus on allocation, as in Bonds plus Equities, you start making some progress. That's exactly what this chart represents; where the money is going and when. Hint: it's going into Bonds. Soon.
BBOT (Bonds Blast Off Time) is here
T-BOND FUTURES, Massive Double-Bottom-Formation, BREAKOUT-Setup!Hello There!
Welcome to my new analysis of T-BOND FUTURES. Within recent times momentous changes emerged within the whole global financial markets as determining factors such as increased consumer demand expenditure and a decreased U.S. CPI have confirmed an important strengthening of the DXY, the U.S.-Dollar Currency Index moving along together with a major uptrend within the bonds. As the bonds market is not about to reverse within the recent times combined with the fact that the DXY stays within a continued uptrend these are factors that I considered within my recent analysis of T-BOND FUTURES as they offer an important view about what is likely to happen next.
Major Double-Bottom Indications and Upcoming Price-Action-Determinations:
When looking at my chart now T-BOND FUTURES are forming a major formation here, which is a substantial double-bottom formation with the first bottom already being completed and the second bottom reaching the major support zones with a high potential to bounce again. Such a double bottom formation indicates a continued demand and bullish expansion volatility once it has been completed within the schedule. Now as T-BOND FUTURES approach the major supports once again this means that the final completion of the whole double bottom is not far away especially once T-BOND FUTURES move forward with the final breakout above the upper boundaries to complete the massive double bottom formation with a breakout above the neckline with an upwind support determined by the 50-EMA and the 35-EMA.
Determined Target Zones and Upcoming Perspectives Together With the Market View:
The first confirmation is going to emerge once the breakout above the descending resistance line, in combination with the 50-EMA as well as the 35-EMA has shown up. The second confirmation and therefore the finalization of the whole double bottom formation is going to emerge once the final breakout above the upper boundary neckline of the major double bottom formation has shown up, this is going to complete the whole formation and is going to activate the final target zones as marked. Especially, with a further bullish momentum and uptrend preceding within the DXY and the bonds market such a major breakout possibility increases more and more.
The first target zone will be within the 151'05 area, and the second target zone will be within the 172'19. A continued momentum within bonds and the DXY that is accelerating and increasing with the higher highs to be formed is going to determine a fast uptrend and reaching of the targets.
In this manner, thank you everybody for watching my analysis of CHFAUD. Support from your side is greatly appreciated.
VP