US 10Y TREASURY: the last call for 4.2%?Although the US equity market was strongly supported during the previous week, where one of the reasons was expectation on forthcoming rate cuts, still, the US 10Y Treasuries reacted in a bit different manner. Yields were testing the level of 4.2%, after successfully breaking the 4.0% level. As per CME's FedWatch tool, traders on the futures market have decreased their expectations for the rate cut in March this year. The percentage dropped from 71% to 53% within a week. This came after the jobless claims were released, which were at its lowest level since 2022. A too strong jobs market might be an indication of increased spending and in this sense, potential for the increased inflation, which might impact Fed's decision to postpone rate cuts for the second quarter of this year.
The level of 4.2% will be tested at the beginning of the week ahead. However, there is a relatively low probability that this level might be breached in a week ahead. In this sense, yields might look toward the 4.0% support line to test it once again.
Government bonds
US 10Y : "FED vs MARKETS" (...who will win?)Hello Traders!
The FED's monetary policy is not convincing the markets, but Powell seems very determined to meet his inflation targets. In near term, market seems to want to counter this hawkish monetary policy, but that could change going forward. In short term, yields remain at high levels and I don't exclude that this rally could continue for the last bullish impulse with wave 5 formation.
Does this bullish pattern meet economic fundamentals over the medium term? ...What is your opinion?
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Long term yields have been running, US Dollar as wellGood Morning Update
Unless this reverses it looks like it is getting stronger.
Thought #interestrates were supposedly going down?
10Yr #yield looks very good & the 30 Yr has been pumping for a bit.
2Yr stopped falling, is it bottoming here?
US #Dollar pumping as well - TVC:DXY
We've been warning.......
US 10Y TREASURY: 4.0% testing is over?The US Treasuries ended the previous year with investors expectations on the forthcoming rate cuts, which was reflected in the Treasury yields which took the downtrend. This year, the 10Y US Treasury benchmark started by testing the $4.0% short resistance level, which ended in a short reversal further to the downside. During the previous week yields were moving within a relatively short range, between levels of 4.0% and 3.9%. Friday’s session ended with modestly lower grounds as investors were digesting the latest US inflation data released for December 2023.
As inflation is easing down further in the US, so will the investors' expectations that the Fed might cut rates sooner from the second half of this year. In this sense, the 10Y yields might test lower grounds, where 3.8% currently stands as a next target and support line in technical analysis which is pending testing.
US10Y: Bullish long term.The US10Y is being rejected on the 1D MA200 after a HL rebound at the bottom of the 1 year Channel Up. The 1D technical outlook turned bearish again (RSI = 42.660, MACD = -0.055, ADX = 36.524), same with the 1W timeframe (RSI = 43.184), so this is still an early buy opportunity for the long term. The 1D RSI patterns among the three bottoms so far are similar and one more pullback to the HL would be ideal for the most comfortable buy entry until the 1D MA50 is crossed. Our target is towards the 0.786 Fibonacci level (TP = 4.600%).
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Bonds go up, stocks go downThe 10YR Yield is retracing up with a strong bullish div on the RSI and momentum wave.
The SPX is on the opposite side.
- strong bearish div on the RSI and momentum wave.
- blue pivot point indications
- price is trading outside the BB and is closing back inside.
The SPX is ready for a big retrace.
US10Y Stock Chart Fibonacci Analysis 011124Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point > 126/61.80%
Chart time frame : C
A) 15 min(1W-3M)
B) 1 hr(3M-6M)
C) 4 hr(6M-1year)
D) 1 day(1-3years)
Stock progress : B
A) Keep rising over 61.80% resistance
B) 61.80% resistance
C) Hit the bottom
D) Hit the top
Stocks rise as they rise from support and fall from resistance. Our goal is to find a low support point and enter. It can be referred to as buying at the pullback point. The pullback point can be found with a Fibonacci extension of 61.80%. This is a step to find entry level. 1) Find a triangle (Fibonacci Speed Fan Line) that connects the high (resistance) and low (support) points of the stock in progress, where it is continuously expressed as a Slingshot, 2) and create a Fibonacci extension level for the first rising wave from the start point of slingshot pattern.
When the current price goes over 61.80% level , that can be a good entry point, especially if the SMA 100 and 200 curves are gathered together at 61.80%, it is a very good entry point.
As a great help, tradingview provide these Fibonacci speed fan lines and extension levels with ease. So if you use the Fibonacci fan line, the extension level, and the SMA 100/200 curve well, you can find an entry point for the stock market. At least you have to enter at this low point to avoid trading failure, and if you are skilled at entering this low point, with fibonacci6180 technique, your reading skill to chart will be greatly improved.
If you want to do day trading, please set the time frame to 5 minutes or 15 minutes, and you will see many of the low point of rising stocks.
If want to prefer long term range trading, you can set the time frame to 1 hr or 1 day.
us10y and the secondary wave of inflation.before you read any further, read my post from april:
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it has been awhile since i've given a public update on the us10y and my general theory about where i believe these rates are headed.
back in april of 2023, i gave an upside target of 5.9% for the us10y.
as of today, i'm raising the range for that upside target into the window between 6-9%, going into the end of 2024.
i'm aware that jpow has mentioned in the last few fed meetings that he has no intention of raising the rates any further, but i'm seeing a significant development on many of the charts this week which tells me otherwise. so i'm calling him out on his bluff.
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us10y w5 algo = 6-9%
Long Yields!Long the 10y for rising rates, this means bank stonks. This isn't a perma long as I expect Q3/4 to slow down on the YoY comps. Ultimately I see a lower high from the past high we saw. Lots of inflation bulls here and I am one of them, but this inflation is printer induced. Forget to restock the printer and inflation disappears real fast. The pair trade here into Q3 is long XLF and short TLT