I just posted about the sudden historical spike in UVXY volatility volume today.
Now look at this one. Bond yields also suddenly spiked, with the 10 year jumping from from 0.65% to 0.785% (so far as the rate is still rising in the future's market). Now, I'm not a bond expert, but here is what I know.
1) 1-2 years ahead of major recessions, the long and short term yield rates typically invert. This already happened multiple times since 2018.
2) As the recession enters its crisis stage, the yield curve separates and and long term yields start to rocket higher.
3) A rising yield rate during times of crisis is not a positive sign as some people believe. It is likely NOT caused by people selling bonds to buy stocks because they are confident in the economy. Rather it is the result of "increasing credit demand" (people and businesses needing to borrow money and issue bonds) and "decreasing credit supply" (banks locking down on easy credit to protect themselves).
4) It is a warning sign of liquidity crunch and possible debt bubble implosion.
From an Elliott analysis standpoint, the most recent drop looks like an impulse. There are no significant gaps and it is accelerating in 5 waves. Very dangerous imho.
Now look at this one. Bond yields also suddenly spiked, with the 10 year jumping from from 0.65% to 0.785% (so far as the rate is still rising in the future's market). Now, I'm not a bond expert, but here is what I know.
1) 1-2 years ahead of major recessions, the long and short term yield rates typically invert. This already happened multiple times since 2018.
2) As the recession enters its crisis stage, the yield curve separates and and long term yields start to rocket higher.
3) A rising yield rate during times of crisis is not a positive sign as some people believe. It is likely NOT caused by people selling bonds to buy stocks because they are confident in the economy. Rather it is the result of "increasing credit demand" (people and businesses needing to borrow money and issue bonds) and "decreasing credit supply" (banks locking down on easy credit to protect themselves).
4) It is a warning sign of liquidity crunch and possible debt bubble implosion.
From an Elliott analysis standpoint, the most recent drop looks like an impulse. There are no significant gaps and it is accelerating in 5 waves. Very dangerous imho.