Us10yr
TLT bottoms in weekly hammer & divergence;but 108 still possibleTLT may have already bottomed out & the US10Y topped out with weekly hammer candles. TLT may find equilibrium at 132, my inflation pivot zone while US10Y may stabilize at 3.6% inflection point retesting its upchannel.
TLT is now completing its M-pattern & has just entered my bullish BUY ZONE at 114 to 120. DCA Dollar cost averaging up from this point presents a very good risk-to-reward ratio.
MORE DOWNSIDE? TLT may still go down to retest 108 where it bottomed multiple times in the past.
Inflation expectations are slowing & the economy is starting to contract with oil & commodities turning down last week with investors pricing in a coming recession.
Not trading advice.
XAUUSD and US10Y Comparison When we look at the correlation between Gold and US 10 Year Yields we easily can see an inverse correlation. When US10Y (Blue Line) increases Gold (Candles) decreases and vice versa. We can see these cycles in green lines. But every once in a while US10Y increases Gold only decreased till the EMA (White Lines) so we can easily say that EMA ($1811) is a big support for Gold.
Since FED saying that they going to increase interest rates more and more we can say that US10Y going to increase more. So that can make pressure on Gold for few months. Even though I don't expect it to fall to $1685 support because of the descriptions of FED, we can still consider that support just in case the possibility of FED to increase interest rates more than 50 pp.
US10Y Trend-Following Long! Buy!
Hello,Traders!
US10 Yield is trading in an uptrend
And the price broke an important key level
Went up and is now retesting the broken level
Which became a support, and I am bullish biased
So I think this is a good opportunity
For a trend-following long trade
Buy!
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US 10YR Yield: A Possible Correction Ahead? US 10YR Yield has reached a yearly high at the 3.200% earlier this month. From the new high, the price retraced and retested the support level of 2.700%. In the 4-hour chart, we can spot a potential head and shoulder pattern. Therefore, we will observe if the price will break below the neckline area in the near future. If the neckline is broken, then we expect a period of correction for the US 10 YR yield.
What does it mean for the market if the yields start to fall?
Intermarket Relationship (Theoretical Explanation):
Yields and Bonds: Inversely Correlated *Yield can be considered an interest rate. Because most bonds pay a fixed interest rate, investment in bonds becomes more attractive if interest rate falls. Therefore, two are inversely related.
Yields and USD: Positively Correlated *A rising yield indicates USD appreciation while a fallling yield indicates USD depreciation. We can relate this relationship with the recent FOMC raising the interest rates, which has reduced the money supply to preserve the value of USD. As a result, yields rose and bond prices fell, and USD currency became more attractive to hold due to reduction of money supply.
Yields and Commodities: Inversely Correlated *If yields increase, USD will appreciate; therefore, an expensive USD would lead to a fall in commodities prices because most of the commodities are priced in USD.
Yields and Stock Market: Inversely Correlated *High yield environment leads to expensive loans, which discourage individuals from investing.
Therefore, if yields enter into a period of correction, we first expect the USD, or the US Dollar Index to fall, which would lead EURUSD, GBPUSD, AUDUSD, etc to rise and USDCAD, USDCHF, etc to fall. From the charts of those USD pairs, we can spot that the retracements have already begun from their recent highs and lows.
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Waiting for the worst...In the chart we have the SPX versus the US10Y (US 10 Year Government Bonds Yeld Rate, in the blue line).
We are at a peak moment.
In principle, the rate in US10Y is inverse, that is, when it goes down, more people are buying — more people leave the stock market and buy government bonds.
The correlation with SPX is high in periods of extreme volatility, as shown in the circles.
Frighteningly, the US10Y is close to the same levels as March/2018 and October/2018.
If it drops like it did before, will we see a strong correction in global markets?
Analyzing the US10Y alone:
The US10Y has broken up a long bearish channel.
The RSI (Relative Strength Index) indicates an extremely stretched value, signaling a possible reversal to the downside.
On the weekly chart it is in a resistance test region, similar to the periods mentioned.
US 10 year yield, US 10Y The most important chart of all the markets is this little kid here.
This chart shows us the cost of US government borrowing which also means the strength of the US dollar as cash in the investors portfolio,
As we can see in this monthly graph that the government's 10-year borrowing yield is 3% (high going back to 2018 before COVID)
What is the meaning of this?
It means that the cash held by households, investors and institutions has reached its peak, as no one is buying and not investing and inflation has remained high and the Federal Reserve will target higher rates on the federal funds,
All this leads to increased risk appetite as bond yields may regress south + inflation starts to fall = real yield will approach 0% after being in negative territory.
The bear market will be over and risky assets like cryptocurrencies may welcome decent green days if not months.
*Note, if the 10-year US yield continues to rise to 5% and 6%, then we will see the euro, stocks, Japanese yen, as well as cryptocurrencies in the best place to buy them all
US10Y: Failure Continuation H&Sit's a little dirty, but it looks like a failed head and shoulders, which would confirm the rebound on the main figure, the weekly head and shoulders of bullish continuation
which could form an engulfing on a weekly chart with the close tomorrow night
I enter with a part of the position and the remainder tomorrow for closing
NASDAQ SHORTS 📉📉📉📉 Expecting bearish price action on NASDAQ as price takes out all the buy side liquidity + weekly highs liquidity and rejected from an important institutional figure 13.0000. I think we go lower as the yesterday's move was too much of a parabolic scenario and price left a big FUNDAMENTAL WICK un-filled. Lets see how the NY pushes the volume
What do you think ? Where we go next ? Comment below..