Bond market bottom ? Equites down bonds to change and move up?Simply put, USA needs the interest rate to be lower, it bounces off the long term KLOS then we could see a change in direction for bonds something that next to no one is expecting. Trump is coming into help save the world. So his new team will make structural changes Elon could tweet to all to buy bonds and hey everyone who follows him takes action to save their own butts. Elon fixes the deficit hugely in relative proportions without putting the jobs at risk.
That would on the one hand help savers and people with mortgages as if the price of the bonds goes up then interest rates go down. however the loss to Americans from their stock portfolios does not help the total money held by Americans.
The box represents only 7% away price may reverse at round number 100, which is not so far away now. This area offers strong KLOS for a bounce from 2004 levels
You could get short term fed notes which pay well and would benefit from any reduction in interest rates. I think these would hold their prices or go up a bit because they may get bid but the money moving out of equites.
Interest rates to move lower ? (with a bit of dollar weakness ?) this will reduce the payments all governments need to make globally so as to stretch their budgets rather then raise taxes.
Overview
Ideas
USB30YUSD trade ideas
Possible Bull On T BondsOANDA:USB30YUSD
With the restart of the economy and lowered interest rates, I expect to see a rise on the treasury bonds as buyers come to swallow up the cheap rates especially during this time although this surprise may be shortened due to the lag it would take to get going and unemployment rates.
US30YUSD 2/6/2020I could be wrrong but I dont beleive with the economic uncertainty the markets are facing, we are still in a bullish trend. Fibs levels are matching up nicely to confirm this aswell. Again this is all hypothetical but I am long some CAD 2037, CAD 2041 and CAD 2048 bonds. Some are hedge vs other positions but mostly long bias. Let me know what you think on my analysis.
FYI Corona virus is far from done I suspect...
Double Bottom on USB30YUSDI could be wrong but if you take Iran out of the equation we had a beautiful double tap forming on the W chart. The signals still stand when you look at it on the D. I think we hit the trend and look for price action. Anyways just an interesting chart I figure I would share!