US10y: Series on Bonds- Sept 20th 2019(7-8 minute read)
For the past couple of month yield curves, particularly the 10 year vs the short term maturities have been a popular topic in the mainstream media, mostly because of the yield curve inversion. This analysis aims to provide a well detailed approach to some of the crucial factors regarding the US Treasuries...
With TLT at nosebleed heights the question obviously becomes, is it time to switch into equities yet?
As you can see TLT (red line) reaches fever pitch levels almost always at excellent entry points into equities, going back all the way to the GFC this has held true.
TLT for what it's worth is also extremely extended, driven to these heights on trade fears,...
The 10 Year has just bounced off near the 120'20'0 Resistance on 1D and based on the neutral 1W action (RSI = 46.325, STOCH = 54.180, Highs/Lows = 0.000), it should reverse towards the 119'02'5 support. Our short's TP is 119'09'0.
A break above 2.50 should revitalize the longer term move back to 3% and get the USD out of its current range and back into an uptrend.
Testing Decembers highs should follow this across the board on euro, pound and yen.
Buy the rumour, sell the fact mode.. on!