With no doubt, bond market is bearish. But somehow price action is strange. After a hawkish FED statement 10y seems to fail continue lower. Meanwhile USD is strengthening but Gold is also holding its gains!
Can it be some sort of early signal for a more radical risk off to hit markets soon?
haOscillator and haDelta+ turning up above there mid lines. MACD also ...
Bonds have broken a ranging period that they've held for months. Yields are near 7-year highs.
That being said there's a big retracement starting to form on 30min/4hour charts so watch for it to test one of the Fibs. As you see it just broke 236 so it’s likely it will make a run for 382. The Kovach Indicators seem to confirm this.
It seems we will likely form ...
10y Note has been trading above the cloud and signals show more bullish bias.
Please note that there is a historically record short speculative positioning on US treasury market, which may cause more short term squeeze up, especially in 10y and 30y bonds.
Short Position (EP) : 120.296875
Stop Loss (SL) : 120.421875
Take Profit (TP) : 120, 119.671875
ZN formed Double Repo Sell at 1d time frame. Trade setup with Sell Limit at 0.382 Level (120.296875) and place stop after 0.618 level (120.421875). Once the position was hit, place take profit before an agreement (120) and 119.671875
Regarding today's bond market behavior, I am reminded of the following words of wisdom mostly attributed to the economist John Maynard Keynes:
"The market can remain irrational longer than you can remain solvent."
From Trump's successful efforts in negotiating an end to a 70 year North/South Korean war, and denuclearization of NoKo, to the Fed raising interest ...