Falling US Interest Rates Vs XME (Metals & Mining)
Today's THREE key words continue to be: INVERSE. CAUSE & EFFECT.
Last week I published a VERY BULLISH CHART FOR-XME. I explained that-XME would breakout to the upside..
This article will try to explain the WHY.
The CBOE-10 year Treasury Note Yield (above chart) is LOCKED IN A STRONG DOWN-TREND.
This has an INVERSE relationship for price action in-XME.
For those of you who read my contributions, I have recommended real estate-TLT-Gold-and other Metals.
As interest rates keep falling just ask yourself "What asset classes directly benefit from falling rates?"
Or, in other words, if falling rates are the CAUSE, then-XME rising is the EFFECT because-XME is the INVERSE of lower rates.
Warning-XME has gone up a lot and is due for a pullback. If you plan to trade metals why not look at both XME-and-TNX to help you in your timing?
Good luck to you. Don.
Last week I published a VERY BULLISH CHART FOR-XME. I explained that-XME would breakout to the upside..
This article will try to explain the WHY.
The CBOE-10 year Treasury Note Yield (above chart) is LOCKED IN A STRONG DOWN-TREND.
This has an INVERSE relationship for price action in-XME.
For those of you who read my contributions, I have recommended real estate-TLT-Gold-and other Metals.
As interest rates keep falling just ask yourself "What asset classes directly benefit from falling rates?"
Or, in other words, if falling rates are the CAUSE, then-XME rising is the EFFECT because-XME is the INVERSE of lower rates.
Warning-XME has gone up a lot and is due for a pullback. If you plan to trade metals why not look at both XME-and-TNX to help you in your timing?
Good luck to you. Don.
