Bund is in short zone.
the perfect time target would be end of January (after Draghi made its announcement and after equities spiked and started moving down?)
Could we have a correction on both
SP500 and
Bund at the same time?
Perfect target: 160 (that s a major excess) in 3 weeks.
agree regarding bund, equities not sure, although crude selloff and strong dollar will have impact, but new ath are possible before that
watching buxl (GX1!) as well, today over 2 pct, such pace can hold 3-4 weeks (now in the 2nd), enough would be just 4 pct up to 166 - last year R3 level, but can shoot up to 171 in a week like in May12, will short trendline retreat or daily reversal pattern
these futures are backed by real bonds which have yields.
i am not familiar with buxl. what s the current yield and what would 171 mean in yield terms?
They were at 2.70 in Nov13 when the 10y was at 2.00
They seem to move parallely but the curve could flatten further and get the 30y lower... so the move could be magnified on the 30y.. that yield is getting ridiculously low though.. who knows what will happen over 30y.. this is getting paid nothing..
http://www.bloomberg.com/quote/GDBR30%3AIND
so call it 166/171 "max" top yes..