US 10Year - 02Year - Yield Inversion (Posted 01FEB23)In this chart you can see how inverted we are and for how long on the 10-2year. I also have the 10-03mo chart that I will link to this also. This is a recession indicator. It will be interesting to follow this chart as the FOMC tries to bring the curve back under control. I will return frequently to run the "Play" and see how they do over the months!
Yield
US 10Year - US03MO - Yield Inversion (Posted 01FEB23)In this chart you can see how inverted we are and for how long on the 10-3mo. I also have the 10-2YR chart that I will link to this also. This is a recession indicator. It will be interesting to follow this chart as the FOMC tries to bring the curve back under control. I will return frequently to run the "Play" and see how they do over the months!
Short to C wave, but im a buyer of the DipsI'm both a bull and a bear on the 20yr treasury etf (TLT).. I created a long term buy analysis basis on the bullish cypher pattern I see forming at the conclusion of D leg. I like the yield of the 20yr treasury bond which is over 4%.. The dividend yield on the 20yr Treasury etf is 2.49% currently, and I expect it to rise. The dividend is paid monthly. I see the yield rising as the price of TLT declines . I see the dividend yield potentially rising to 4% , that would be an outstanding monthly yield for long term holders. You can also sell puts here, or calls to generate revenue. Long term buyer, and Call writer (which will lower my cost basis, and return use the upfront premium to buy more shares of this etf, further increasing the yield and dividends)
How will markets react to rising yield and dollar?Moving averages can be applied to many things, from stocks and currencies to fitness measures and crop harvests. Here, the candles show US10Y is finding support off the 200ma, after making a significant decline. The 20ma (blue) and 50ma (dark blue) will indicate the yield's next trend as they separate.
The green line graph shows a serious decline in the U.S. dollar. As the orange short-term trendline shows, it may be ready to move a little higher.
The yield and dollar may not rise back to the highs, but they definitely can move up for a bounce in the near term. If the recent relationship continues, then this would create selling pressure for global and tech stocks while giving another lift to defensive sectors.
Here's a little-known fact to watch out for:
Starting in January, a new formula is being used to calculate CPI (consumer price index) data. The first release of this will be in February and the numbers are expected to increase relative to Dec. data. The new calculation will update spending weights annually (using one year's data) instead of biennally. Thus be alert to the possibility that markets react negatively to a high Jan. CPI, as the majority now think prices are coming down. On the flip side if CPI is in-line or lower even with the new formula, then markets will get quite a lift.
www.federalregister.gov
2Yr Yield creeping up slowly$TNX is closed atm but if the 2yr is an indication it may open higher
We re-entered long yield after FED day in DEC.
Sold puts on $TYO & bought common
Didn't go heavy because Monthly chart is a tad tough.
Weekly 2yr trading decently above avg's again
So far so good.
We were bullish on STOCKS but that was late Oct/Early Nov, then went bearish for a bit, & are now NEUTRAL.
EDIT:
Keep in mind that in BULL MARKETS items can remain OVERBOUGHT for long periods of time.
$JPY - Where to next?$YEN - Where to next?
Well, we are coming into the end of yr but we still have opportunities we could get. Now be careful we will get end of year moves, portfolio adjustment etc.
However, the way I trade I look at key support & resistance levels we have a very important zone of support: 136 half - 135 now break below that - BEARS come out shorter term. BUT If price stays above, I think we have a good chance those bulls are still in control and we are going back towards 140 areas easily.
Now that's my plan minus risk and how I will take my profits - But it's a plan. What's going to be your trade plan for $YEN?
Data wise: PMIs
Have a great weekend,
Trade Journal
$USDNOK - Now we wait...$USDNOK - Now we wait...
Another week for us traders to take advantage of
Excellent set up for usdnok - now we wait for a break to either direction we do have key fundamental data this week. Will Powell be as before dovish or will he hawkish as well as that softer cpi coming our way expected and then taking into consideration the technical view of usdnok it's not bad R/R either direction.
Trade Journal
Bond Market Signals Potential Trouble for the Federal ReserveIn recent weeks, the bond market has been sending a strong signal to the Federal Reserve: it may be making a serious mistake. The yield curve, which measures the difference in interest rates between short-term and long-term bonds, is currently more inverted than it has been since the early 1980s.
An inverted yield curve occurs when short-term interest rates are higher than long-term interest rates. This can be a cause for concern because it can indicate that investors are expecting economic growth to slow in the future. When investors expect the economy to slow, they are less likely to lend money for long periods of time, leading to higher interest rates on short-term bonds and lower interest rates on long-term bonds.
The current yield curve inversion has many experts worried. In the past, an inverted yield curve has often been a reliable predictor of a recession. In fact, every recession in the past 50 years has been preceded by an inverted yield curve.
One reason for the current inversion may be the Federal Reserve's recent interest rate hikes. The Fed has raised interest rates several times in recent years in an effort to prevent the economy from overheating. However, these rate hikes may have had the unintended consequence of slowing economic growth.
Despite the potential risks, experts believe that the current yield curve inversion may not be as concerning as it seems. They argue that other factors, such as the strong job market and low unemployment rate, suggest that the economy is still in good shape.
In the end, only time will tell if the bond market's concerns are justified. However, the Federal Reserve will need to closely monitor the situation and be prepared to take action if necessary to prevent a potential recession.
$JPY - What can we do? $JPY - What can we do?
As mentioned in previous posts, data ISM will impact the market today. However, I am looking at key levels as long as we dont break the lows in the yen - this could be a little bit of a pull back trade we as traders could take advantage of.
Don't forget to trade your own plan.
Trade Journal
Farm coin / harvest finance cup and handle #farm farm coin cup and handle at play 4hr chart the volume of this very low max supply coin of 690k and still less than £40 a coin still volume was up over in its 1000s% over a week. And don’t forget it yields the highest apy within defi. It’s a no brainier this coin in my opinion can trade easy over 5k a coin
Soxs is the ticket out of povertyDefended support, on high volume, trendline support,
Capitulation already took place, inverse head and shoulders break, semis are overpriced and garbage again after 40% rally. Come with me as we milk this one last time into vix 45
If this market keeps going up slowly or continues consolidating I will keep adding
3month and 10 year yields are inverted like hell and people are buying 2000 pe stocks into a recession god help us all
The fact that Bitcoin still has buyers sickens me