Hello everyone. Here is a trade idea on the 30 year Treasury yield. According to the weekly chart, there is a breakout of the inverted heads and shoulders of the 30 year yield.
Macro Thesis: The FED controls the short term interest rate, and the long term interest rates are determined by the supply and demand, meaning the buyers and sellers of the long bond. The...
The FOMC minutes are being released as I write this, but weak inflation seems to one of their key concerns. Expect the yield curve to continue to flatten as this gets priced into the long end. The spread between the US 30 year and Us 2 year has been careening off a cliff lately and given this news, it is safe to expect this trend to continue. The Kovach Chande...
The yield curve (spread between the 30 year and 2 year spread) just broke below 1%. All indicators suggest this trend to continue. It has been encroaching the lower Bollinger Band of the Kovach Reversals Indicator, with no retracement in sight. A retracement will be confirmed by a green triangle, if an when it happens. The Federal reserve should be very ...
