2Yr Yield Rolling Over?And there goes the the 2Yr Yield, it is whimpering.
Unless something happens this is rolling over further.
10Yr Yield had a nice bounce but it is also rolling over.
TVC:TNX is only 33 basis points from normalization!
Short term #yield is looking very weak, 6 month and 1 Yr, not shown.
More info see profile...
TYD
$SPX almost like clockwork to 2022TVC:NDQ has traded back above the NECKLINE (from Head & Shoulders Break down) - Amazing!!!
DJ:DJI has not traded above and neither has the $SPX.
In this chart we see the SP:SPX illustrating the resemblance to 2022.
We've been showing this chart for some time now.
It's amazing how similar they are trading.
AMEX:TYD is running today (leveraged bonds ETF) likely an anticipated demand for "safety" causing #yields to fall.
SGX:SQQ NASDAQ:TQQQ NASDAQ:SQQQ
AMEX:DIA AMEX:UDOW AMEX:SDOW
AMEX:SPY AMEX:SPXL AMEX:SPXS
US 10 Year Bond is testing it's daily uptrend line and supportI posted this as neutral because it can go either way from here. I bought TYO in my 401k two days ago and shorted the future yesterday.
For those who are short, this is a take profit area if support holds. I will put a tight stop loss here. A long position can be taken here depending on the price action. If it breaks support and the uptrend line, short at an appropriate time. usb10yusd -0.25% usually falls with dxy 0.14% strength. Caution: These leveraged etfs are low volume which affects entry and exit prices and liquidity.
Grab some treasury on a full bus of bears! Despite the bond bubble right now, I believe there's some room for another rally in bonds.
The election of trump have seen stocks driven to record highs, and bonds/treasury/gold crushed. The longest stretch of inflows into US equities since 2014 when the dollar rallied 20%.
Net short in 10 year bonds are currently at record lows: (-500,000)
i.imgur.com (courtesy of zerohedge)
A large covering of shorts could drive bonds much higher in the coming days into Q4 earnings season. I believe a buy at this level is a pretty reasonable risk reward on the backs of the majority in the market... (4% stops, 20% tgt)