SELL ZB1!Good morning dear traders!
I'm sharing with you one of my trades for today as I usually do.
I managed to share with you the TREASURY BONDS one, as you can see on the chart the price broke the channel for the fist time as a fake breakout, the 2nd time it did the same thing but it managed to come back down ad give us the confirmation to sell, my customers and I got in an hour ago, now since the market is on the move I shared it with you since I can't share them to pu lic at the same time I give it to my customers whom pay for signals.
TP and SL set them at your own risk
If you got any questions don't hesitate to ask I'll answer with pleasure
Treasuries
Recap of my trade for todayGood afternoon and good evening traders!
I'm sharing with you a recap of my trade for today, actually we caught the 1st up trend after breaking the support line with a quite high volume, then after having the highest volume of the day on the candle I put the 2nd arrow at we added another position to finish the trade on the market with 2 contracts and a respectful profit after seeing a squeeze of buyers and closed at the end of the red candle I put an arrow on. After that the price broke the support line of the channel I shared the trade with you too early to make some profit of it.
For more questions don't hesitate to ask and I'll be answering with pleasure.
PS: The autocorrect changed the FUTURE to FEATURE on the post I posted this morning
Recap of my trade for todaygood afternoon and good evening traders, I'm sharing with you the recap of my trade for today on CRUDE OIL, today I posted it too early than usual since my custommers and I got in multiple markets and were already on profit at the moment we got in this one.
The reason why we sold is theprice pulled back on thet resistance line which is provided by a tool I can't share to public, after we got what we call a squeeze on the trading system I follow we closed and ended the day with good profits, however yesterday was perfect, I didn't post since I got new custommer I was setting the chart with.
See you tomorrow on a new signal !
In case you got any question don't hsitate to ask!
SELL CL1!Good morning traders, today I'm sharing with you a quick analysis on CRUDE OIL for day traders, as you can notice on the chart, we have a resistance line provided by a tool my mentor developed (I only share it with my private clients), the price came back up to retest on it to continue its way down.
SL and TP set them at your own risk
For more questions don't hesitate to ask.
Recap of my trade for todayGood afternoon and good evening traders, for today on CRUDE OIL it went sideways and on the other 2 markets we traded and it's okay since this is how trading works, today's not our day so we stopped at the morning after losing 1.5K and we'll recover it in the following days.
I don't only share my wins, losses also must be shared so beginners know that trading isn't always winning sometimes it goes against you and also advances traders also have bad days in trading. Learn from your losses and never quit !
See you tomorrow in another signal.
In case you got any quesion don't hesitate to ask!
My Thoughts on Treasury Yields and Why You Should Care5% of on a 1-year US Government Bond Yield?
I never thought that I would see the day.
Many of us have grown up in a low rate world. Today, you buy a US Treasury bond, hold it for a year, and get 5%. That's more than most stocks yield in dividends, probably nearly double or triple the average. However, it's said that the S&P 500 averages 7% a year or so. Nonetheless, factor in recession fears and the trade becomes even more interesting.
What are government bond yields?
A government bond is a debt security issued by a government to raise money. When you buy a government bond, you're effectively lending money to the government in exchange for interest payments. The yield on a government bond is the return you'll receive on your investment, expressed as a percentage. So if a bond has a face value of $1,000 and a yield of 3%, you'll receive $30 per year in interest.
Why are government bond yields rising?
I can list out those reasons for you below:
1. Inflation
2. The Fed is purchasing less Treasuries
3. Economic growth is slowing, which means taxes will be less
What are the major implications?
Opportunity costs.
I'll say it again: Opportunity costs.
Everything that is bought, sold, and/or traded now must be weighed against this 5% yield. Do you want to buy Apple for the next year at its current valuation or take a risk to get 5% on a Treasury bond? You can substitute Apple for anything and everything that comes to mind from construction investments to crypto.
Do I own any bonds?
NO. I missed it and am only now paying attention. Will I potentially add some to my portfolio? 5%? It's possible. That's why I wrote this idea. I want to share my thoughts and add a few of these symbols to my watchlist.
I look forward to reading your comments!
Yield Curve InversionThe chart above is a yearly chart of the ratio of the 10-year Treasury yield (US10Y) to the 2-year Treasury yield (US02Y). The chart is meant to highlight how extreme the yield curve inversion is getting. Typically a yield curve inversion is indicative of an impending recession.
Usually, the 10-year treasury should have a higher yield than the 2-year treasury since there is more risk involved when you invest in a longer-term treasury. Just recently, the 10-year treasury yield has reached a record low ratio of only about 85% of the 2-year treasury yield. In other words, investors are being compensated less for taking more risk.
As the chart below shows, the rate of change (on a quarterly basis) in the 2-year Treasury yield has been parabolic.
Below is the rate of change (on a quarterly basis) in the 10-year treasury which is typically more stable than the rate of change seen in shorter-term treasuries. The chart shows that the 10-year treasury yields have also been moving up at an unprecedented quarterly rate of change.
Many analysts look to an inversion of the 10-year yield with the 3-month yield, which has not yet occurred. The failure of the 10-year yield to invert relative to the 3-month yield is likely due to the unprecedented rate of change in the 10-year yield, which has historically remained relatively stable. If the 10-year yield is moving up at a higher rate of change than the 3-month yield, this can delay or prevent an inversion altogether.
Check out my analysis from July for a more in-depth discussion on why the failure (or delay) of the 10-year yield to invert to the 3-month yield might be signaling that we've entered into a new supercycle, in which higher yields may continue for the long term:
SELL ZB1!A bonus trade for you, Currently I'm in a short trade on TREASURY BONDS, we got in after breking through the support we have in 125'02, now since we just added another contract and the price has already moved I said why not to share it with you to touch some profits.
I don't share trades at the same moment I get in it since I have customers I give signals to privately
SL and TP set them at your own risk
Two Big Indicators to Watch This WeekTraders,
There are two cautionary indicators that I want you to be aware of and to watch closely this week. One of them has to do with U.S. treasuries which lead our dollar strength/weakness. The other has to do with the 200 week moving average on the Bitcoin chart. Let's dive in and take a look at these two very important lead indicators.
Stew
10-Year Treasury Yield Ready to Extend Advance to 2022 Highs?The 10-year Treasury yield has been rising since the end of January in the aftermath of a Bullish Morning Star candlestick pattern.
Now, prices are approaching the December high at 3.905 after confirming a breakout above a falling trendline from October.
Meanwhile, a bullish Golden Cross is set to form between the 20- and 50-day Simple Moving Averages, further offering an upside technical bias.
Confirming a breakout above the December high exposes the 78.6% Fibonacci retracement level at 4.118 towards the 2022 peak at 4.335.
US10Y
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.
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.
long short term bonds bullish cypher forming elliott wave 4-5looking at short term bonds over the next 3-4yrs and take the monthly dividend. From the 4th Elliott wave to the 5th, then I'll likely convert over to the 20yr treasury in 2years to try to buy the D leg of the cypher pattern on the 20yr. see charts. In this chart, notice how the price action retrace back to the 3rd wave, this movement was a very big bearish cypher pattern... I'm a buyer of the dips
Bond Market Rallies After Inflation DataBonds have soared after yields collapsed due to CPI coming in slightly better than expected. This follows months of consistently high readings fueling a hawkish Fed. With this reading, the markets will likely start to anticipate a pivot to a less hawkish stance. ZN broke through our target of 110'27, and moved a full handle above that to 111'26. It is currently meeting resistance at 111'29 or so, where a red triangle on the KRI is confirming resistance. Watch for ZN to equilibrate as the news gets priced in. If we can keep going then 113'12 is the next target, otherwise, 110'27 should give support.
US 10-Year Treasury Yield Bullish Engulfing in Focus Before FedThe US 10-year Treasury yield left behind a Bullish Engulfing candlestick pattern on the daily chart this Friday.
This is as the bond tested a rising range of support from August.
A turn higher from here could open the door to revisiting the October high of 4.33.
Otherwise, breaking lower exposes the 50-day Simple Moving Average, which could reinstate the upside focus.
All eyes next week turn to the Fed, which is expected to deliver a 75-basis point rate hike. The focus will rather be on their language going forward as markets increasingly expect moderation.
TVC:US10Y
How low can bonds go?Months ago, when 10 year bond futures were still 175, this weekly head and shoulders pattern jumped out at me. It looked so big and so bad I almost didn't want to believe it could play out.
Now, as we approach 135, this massive, fully triggered pattern may be the best indication of where bonds are headed: 125.
Sure, they could bounce a few times as they have done on the way down, but ultimately June 2011 lows are the likely stopping point on this decline.
BONUS: As you can see, I didn't count the massive March 2020 wick or include it in the measured move. Better to be prepared for the UB to overshoot the 125 target by a little or a lot before staging any meaningful comeback.