Raising Rates Here Will Blow Japan Up. Blowing Up US Yields
Up coming Federal Reserve meeting, there's still underlying inflation in the USA but the amount of interest on debt + Japan buying US debt while their currency is almost completely free falling.
Would be one of the worst fiscal policy disasters since 2009.
Looking at Japan's society they're completely clueless of how close they are to blowing up.
Us10y!
US10Y: Channel Up intact but first time on a Bearish Divergence.US10Y continues to rise inside a long term Channel Up, with its 1D technical outlook bullish (RSI = 57.618, MACD = 29.942, MACD = 0.116). The 1D RSI though is for the first time in the recent months under a LH bearish divergence so for the first time the probabilities for a bearish reversal get stronger. Consequently, if the price crosses under the Channel's bottom, we will see and target the 1D MA50 (TP = 4.600). Until then, we will but on the first 1D candle that closes under the S1 level, aiming at a +10.70% rise (TP = 5.185).
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EURO VS U.S. DOLLAR. TO LOW, OR NOT TO LOW. THIS IS THE QUESTIONThis publication is for Euro against U.S. dollar, and quick and simple as well as all other publications by @Pandorra
2023 is about the end, so let's take a look on technical perspectives for FX:EURUSD .
The main graph is EURUSD semi-annual 6-month chart (yes, they also exist on TradingView, as well as quarterly 3-month charts and annual 12-month charts).
EURUSD is being concentrated on multi year floor, with lowest levels at semi-annual close around 1.05 (actual again in this time).
Well, recently being inspired with finding NASDAQ:TLT multi year floor, I guess that breaking down the 1.05 floor in EURUSD can turn the price much and much lower.
Maybe to 1.6 Euro for 1 U.S. Dollar somewhere in mid or late 2020s, or early 2030s.
Patience.. Patience.. and once again Patience..
The Time will show.
#US10Y Yields perhaps a little extended here short term?Got to be brave trying to run infront of this steamroller, but we are starting to see signs of bearish divergence where price(yield) is making higher highs, not confirmed by the RSI and MACD which are currently making lower highs. This could be warning of a short term reprieve in yields which could be bullish risk assets. However, given the current environment with conflict in the middle east, one has to becareful
US 10 YEAR YIELDS (UPDATE)🚀Despite hitting our target, the US10Y has kept pushing much higher due to economic uncertainty. Biden has requested for an extra $100 billion in Congress to fund the Russia & Ukraine war, to give money to Taiwan & more money to Israel, to carry on their genocide against Palestine.
If this $100 billion is approved, then we can expect Bond prices to carry on crashing, while the US10Y keeps reaching new highs.
How the Fed affects long Bond YieldsInverse chart of US10Y Yield to show changes in Bond prices.
Overlayed with the following:
Fed Funds Rate
US Treasury Deposits to Federal Reserve Banks
Increase/Decrease Rate of change to Fed Balance Sheet
Balance Sheet Total in separate pane below
The USCBBS Percentage Change shows the money raining down :-D
It's clear to see the relationship between the Fed buying Treasuries, i.e. Quantitative Easing (QE) and the increase in US10Y prices.
Quantitative Tightening (QT) is the name of the game now. There is A LOT of QT left to do, we're at most 25% into QT since the Fed has only rolled off roughly 1Trillion. They likely have 3+ Trillion to go. Expect US10Y to be under continued pressure as long as QT is in effect. Even when Fed Funds rates are lowered it will have little effect on US10Y while the biggest buyer of Treasuries is on hiatus.
US 10Y TREASURY: has finally topped?It was a sort of game of nerves during the previous week, watching the US 10Y yields reach the level of 5%. This occurred for the first time after 2007, but the difference on charts was that no one was sure whether yields would stop at this level. It was such a strong push to the upside, after Fed Chair Powell's speech at the Economic Club of New York on Thursday. Although he said nothing new with respect to potential further rising of interest rates or inflation, still, the markets did not want to hear that jobs and economic growth need to suffer in order to bring the inflation down to 2%. Adding to it the developments within the Middle East crisis, the perfect storm occurred with US Treasuries.
Friday`s trading session brought some ease in 10Y Treasury yields, so they finished the week at the level of 4.91%. In case that they continue to ease in the week ahead, then the level of 4.80 might be the next stop for yields. However, in the case of any potential negative news which might bring yields to the higher grounds from 5%, it would certainly not be at all a good sign for the future prospectus for the US economy.
Bitcoin decopule with US10Y ? Where to look in bull cycle ?It has been commonly accepted that when yields and rates rise then higher risk assets should fall in value as money is tempted by yield returns
This relationship seems to be getting tested as Bitcoin and US10Y moves up together. It does give impression that bitcoin is not as risky as potentially imagined and can be seen as a flight to safety or "quality" to quote Fink.
If bitcoin continues then it is commonly accepted that it will lead out smaller caps in the cryptosphere
Its important to note that Bitcoin (on average) moves first. Why this is important is because it flies in the face of those who say Bitcoin will give less return then 'X' coin because in the very end X will ultimately move up more in % terms. However, if Bitcoin (on average) leads out the rest then the opportunity to reallocate lays mostly with those holding bitcoin. If you have to wait and watch as the rest of the market booms to see smallcap X coin eventually make its move.. then you have little chance of redistribution and any compounding. Whereas Bitcoin holders can take profit during btc move and redistribute into smallcap X coin pre its own breakout and essentially compound growth in that cycle.
Where after Bitcoin?
I believe that safe bets beyond Bitcoin that will move well post bitcoin runs are the sub sector monopolies within the cryptosphere. Coins that dominate their sector. Clear example is Uniswap's UNI.
US10Y Bearish Divergence tells us it may be time for correctionLast time we looked at the U.S. Government Bonds 10YR Yield (US10Y), it gave us a technical bounce and profitable buy signal (see chart below) as the Higher Lows trend-line held:
This time we get an opposite signal as the 1D RSI formed Lower Highs, while the price is on Higher Highs, which is a technical Bearish Divergence. The asset is still supported both by the 1D MA50 (blue trend-line) and the Higher Lows 3 trend-line since the May 04 Low.
Our strategy is to sell and target a price slightly above each Higher Lows trend-line, then re-sell if a 1D candle closes below that Higher Lows trend-line. Target 1 is 4.745, if a 1D candle closes below Higher Lows 1, we will re-sell and target 4.645 (expected contact with the 1D MA50). If Higher Lows 2 break, then re-sell and target 4.465 on Higher Lows 3 and a projected contact with the 1D MA100 (green trend-line).
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10Y & 30Y Yield losing more steamGOOD MORNING!
#interestrates look like they want to slow down a bit, short term top.
We see the 10Y & 30Y pulling back a bit...
But this is better seen intraday.
We'll see how that unfolds...
IF IT DOES, it could cause a sharp rise in #Stocks.
Coincidentally, DJ:DJI @ support & TVC:NDQ is near a major support.
TVC:TNX AMEX:DIA NASDAQ:QQQ
The bear steepener and when we will get our scripted eventWatch this curve because the market always knows, and the market isn't as free as many think. Gives us a sign when the true risk off kicks in. Might be due for a short relief soon, and then it starts. A potential bounce area is market as white, might not match and steepen now, but the breadth indicates that more likely than not we will get it in a matter of weeks now since we've technically broke out from the pattern.
Citizens Financial Group. Possible Upside on Q3'23 Earnings CallBond pressure...
Pushing' down on me,
Pressing' down on you,
No man ask for...
Technical graph says that possible upside with NYSE:CFG stocks could be possible, with projected/ targeted line at 52W SMA.
With 6.20% dividends yield, double-digit operating yield and P/B just at 0.6, NYSE:CFG securities can be considered as quite undervalued.
The protection level can be considered as multi months (6-, 12-months) low.
🐹 Caution To All TLT Hamsters - TBT Has More Room to DeliverTBT is a UltraShort 20+ Year Treasury ETF.
This Fund seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the Daily performance of the ICE U.S. Treasury 20+ Year Bond Index.
1. Always look first. Never rush into a trade or investment blindly.
2. Wait, and wait again, for the pattern to develop.
3. Be patient and use alerts to get notified when the time is right.
4. Measure trading ranges and adjust your plan for sideways action.
5. Look for bases and consolidations.
6. Zoom out and look for historical levels of support and resistance within those bases or consolidations.
7. Markets can go sideways longer than traders can stay solvent.
8. Adjust your stop loss and take profit targets for the choppy price action.
9. Be prepared for false breakouts and false breakdowns.
10. Choppy markets do not trade like trending markets.
Technical picture in AMEX:TBT indicates it has possibility to further upside price action, up to 57 - 60 U.S. dollars per share, as key multi year resistance (5-years simple MA) has been successfully broken at the end of 2022.
Long Term Yields catching a bidGood Afternoon!
Long Term #interestrates are PUMPING today!!!
The 10 & 30 Yr have been struggling in this area.
They are currently forming a negative divergence. We'll see how that goes.
3Month - 1Yr haven't moved much.
2Year #yield is also moving. This is "good"! That means that the normalization of yield curve is not happening yet.
#stocks #gold #silver
US 10Y TREASURY: weight interest rate outlookThe US Treasury yield eased a bit during the previous week, after a sharp move to the upside, during the past two weeks. This comes as a result of market expectations that the Fed might skip further rate increases during the course of this year. Latest published inflation figures are indicating that the inflation is clearly on its down-path, but still there are some uncertainties which might impact its short reversal, especially due to geopolitical tensions.
The 10Y Treasury yields started the previous week around 4.8% level, but soon eased and reached level of 4.5%. Still, yields are finishing the week around 4.6% level. As markets are now increasing probability for Fed to pause its further rate hikes during both November`s and December`s meetings, it could be expected for US Treasury yields to further ease. They will start the week ahead around 4.6%, with a high probability for 4.5% to be tested one more time, but there is no indication on charts that 4.4% might be reached in the week ahead.
US10Y Bullish as long as the 1day MA50 holds.The 10year Bond Yields / US10Y is trading inside a Channel Up since May 1st.
The last two weeks the price is pulling back after a Higher High rejection and Double Top on Resistance A (4.888), aiming at the bottom of the Channel Up.
That is a buy opportunity to target 4.888 again.
If on the other hand the 1day MA50 breaks (is untouched since July 20th), sell and target 4.222 (Support A).
Keep an eye on the Rising Support of the 1day RSI also for early bearish signals.
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GOLD SHORT TO 1767 (4H UPDATE)📉Gold bulls have been absolutely rocketing today on the news of Israel invading Palestine & killing even more citizens. 500+ PIPS within a day & it's only been half a day😵💫 Be interesting to see how market closes its weekly candle today.
Below $1,920 - Bearish
$1,930 - $1,940 - Neutral
Above $1,940 - Bullish
GOLD SHORT TO 1767 (4H UPDATE)📉If you look at the 4H candles you'll be able to see buying momentum is slowing down rapidly. Price has also taken out the equal high liquidity at $1,880 which'll give sellers the momentum to carry on down. Waiting for price to settle down now & provide a more clear market structure. But overall, looking very good👍
DOLLAR INDEX LONG TO $108 (UPDATE)📈The Dollar Index has just about missed our $108 target, shy of 50 PIPS. However, I still think the DXY will make its way back up.
USD markets like USDJPY haven't topped yet & neither has negative correlating markets like Gold bottomed either. I expect the Dollar to to find its top in the coming weeks, with Gold also bottoming soon. Then we'll witness major reversals📈
$DXY & $TNX & Rates show signs of exhaustionThe US #Dollar has pulled back a bit:
At MAJOR SUPPORT
At Green Moving Avg = Support
RSI is at 50 (neutral bullish unless crosses lower)
Weekly TVC:DXY is 50-50
The RSI is curling over but the MACD is now above 0 = down trend over
Hmmm, interesting scenario
Not sure what to make of it Monthly
#currency
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The 2Yr #Yield broke the recent up trend.
While it has performed better than shorter term #interestrates it's gotten weaker recently.
The RSI & MACD have been trending lower for some time and it's much easier to see on a weekly! Look @ that Severe Negative Divergence!
Could rates be DONE?
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The 10 Yr #Yield on the other hand has built good deal of steam lately.
Weekly it is overbought.
Monthly it's overbought as well. But what is interesting is that the MACD has only been higher 1x than current scenario.
MACD histogram lower (arrow) = future MACD neg crossover?
However, it's nowhere near as weak as short term #interestrates
TVC:TNX