Parabolic Decline in Long Term Interest Rates Nears a Bottom
Direxion's TMV, Triple Bear ETF on 20+ Year Interest Rates,
last week broke major Daily Pattern Support at 15, with volume
and closed Friday at 14.01, down nearly 4 % on the day.
To my eyes, it looks to have been a total capitulation breakdown.
The contrary idea here is that the long end of the bond market 20 + year
is in a parabolic advance, that is crucial for understanding this idea, ( See Chart)
as rates plummet towards 2 %, on the 10 Year Bond (TNX)
a rare phenomena, as investors seem beside themselves to buy bonds right now.
Looking at the momentum Indicator on TMV,
the stochastic you can clearly see it is now at it's 3rd bottom,
in the same deeply oversold area.
They are letting you buy a triple bottom here, another rare phenomena.
The idea is to go long or buy TMV, perhaps as early as Monday's Open,
thinking that 90 days from now, or by Sept 1, 2019
long term interest rates would have bottomed above 2%,
and would have been well along in a move back to 2.50%,
as the latest yield curve inversion, becomes a thing of the past
,as the Fed refuses to play patsy, to go along with the crowd,
and lower interest rates this summer.
So if you agree with any of this assumption,
then just sit back and wait, as the economic superpowers find a way to grease the skids,
to keep the world economic expansion going,.. no matter what the cost.
Conclusion :
Long Term Rates, 20 + Year will begin to rise again this summer.
Recommendation:
Buy TMV
14.01 Last
THE_UNWIND
6/2/19
NEW YORK
last week broke major Daily Pattern Support at 15, with volume
and closed Friday at 14.01, down nearly 4 % on the day.
To my eyes, it looks to have been a total capitulation breakdown.
The contrary idea here is that the long end of the bond market 20 + year
is in a parabolic advance, that is crucial for understanding this idea, ( See Chart)
as rates plummet towards 2 %, on the 10 Year Bond (TNX)
a rare phenomena, as investors seem beside themselves to buy bonds right now.
Looking at the momentum Indicator on TMV,
the stochastic you can clearly see it is now at it's 3rd bottom,
in the same deeply oversold area.
They are letting you buy a triple bottom here, another rare phenomena.
The idea is to go long or buy TMV, perhaps as early as Monday's Open,
thinking that 90 days from now, or by Sept 1, 2019
long term interest rates would have bottomed above 2%,
and would have been well along in a move back to 2.50%,
as the latest yield curve inversion, becomes a thing of the past
,as the Fed refuses to play patsy, to go along with the crowd,
and lower interest rates this summer.
So if you agree with any of this assumption,
then just sit back and wait, as the economic superpowers find a way to grease the skids,
to keep the world economic expansion going,.. no matter what the cost.
Conclusion :
Long Term Rates, 20 + Year will begin to rise again this summer.
Recommendation:
Buy TMV
14.01 Last
THE_UNWIND
6/2/19
NEW YORK