JICPT| US10Y yield back to middle of the old range!
Hello everyone. The US 10Y yield dropped by more than 8% today attributed by the fear of Covid-19 spread resurge.
As the key fund cost of USD(risk free rate), I couldn't emphasize more on the importance of the US 10Y yield. Normally, it reflects expectation of future economy growth and inflation. Today's drastic drop, I guess , is mainly for the sluggish economy, not the inflation.
The fear also spread to other markets. I observed that Nasdaq, Dow, S&P are all down by over 1%. I published bullish setups of Nasdaq on 4H last week, with two zones being violated. Technically, if it can recover the loss late today, no crossover of MA will happen on 4H and it will head up to the upside. Another scenario is that short-term and mid-term MA cross the long-term MA to the downside, that would create a short opportunity on the 4H, just like May 10th. You can check the chart for the pullback short.
For crude oil, the slowing economy undermines the future demand. I noted a over 6% drop.
So, what is up relatively? The safe heaven assets are dollar and gold. Gold is relatively strong with a 0.5% loss. Some buyers definitely rushed into the asset.
For USD, just check GBPUSD. U.K has removed a majority of lockdown restrictions even with rising new cases. For example, wearing mask is not compulsory anymore . that weighed on the sterling.
Nowadays, we need to have understanding on multi assets correlation. It enables us to increase the accuracy of prediction of how the market goes, but build up robust investment or trading framework.
Stay safe and trade safe. Do give me a like if you're with me.
As the key fund cost of USD(risk free rate), I couldn't emphasize more on the importance of the US 10Y yield. Normally, it reflects expectation of future economy growth and inflation. Today's drastic drop, I guess , is mainly for the sluggish economy, not the inflation.
The fear also spread to other markets. I observed that Nasdaq, Dow, S&P are all down by over 1%. I published bullish setups of Nasdaq on 4H last week, with two zones being violated. Technically, if it can recover the loss late today, no crossover of MA will happen on 4H and it will head up to the upside. Another scenario is that short-term and mid-term MA cross the long-term MA to the downside, that would create a short opportunity on the 4H, just like May 10th. You can check the chart for the pullback short.
For crude oil, the slowing economy undermines the future demand. I noted a over 6% drop.
So, what is up relatively? The safe heaven assets are dollar and gold. Gold is relatively strong with a 0.5% loss. Some buyers definitely rushed into the asset.
For USD, just check GBPUSD. U.K has removed a majority of lockdown restrictions even with rising new cases. For example, wearing mask is not compulsory anymore . that weighed on the sterling.
Nowadays, we need to have understanding on multi assets correlation. It enables us to increase the accuracy of prediction of how the market goes, but build up robust investment or trading framework.
Stay safe and trade safe. Do give me a like if you're with me.
Comment:
The concern got eased and US 10Y yield is back to its level before the fall around 1.35
plan your trade and trade your plan
