US2y to stay below 1.500The chart patterns indicated that the US2Y yield is going to break and stay below 1.500.
The implications are that the spread (or difference) between US10Y minus US2Y is getting smaller. This, in turn, is suggesting reversion or a correction in US Indices towards the mean
You can see the initial chart pattern A, which led to the corresponding drop to point 1, and chart pattern B, which led to drop point 2
I think the US2Y will hold at 1.418 and then fall to 1.365 as the maximum potential drop
Trade ideas
Keep an eye on rates!!I am looking for a bear steepner at this time. Keep an eye on 10y yields. We may see kumo breakout soon. This will impact a few things.
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Comparing US02Y vs US10YBy decrementing US10Y from US02Y we see the actual breakout so to speak.
Volatile. Already touched the previous Global Resistance with a huge spike and most likely next 2 to 3 years are going to be volatile as well coming to an end around Nov 2021 - the point that looks pretty similar to what we already saw in 1991 | 2001 | 2008 and notice since 2008 the move down wasn't that significant comparing to the previous two(1991-1993 and 2001-2003) thank's to US QE I guess? We might actually end this trend or maybe just maybe from 2021 to 2023 going below the ZERO which you can comment the possibility of that happens and how do you prepare yourself ;-)
According to this time analysis in Nov 2021 "the disaster" is going to be at the peak.
Rate cut on PointFED with no other choice but to cut rates as predicted a few weeks ago. This was no coincidence and perfectly plays into the recession scenario.
Cutting rates with the fully loaded balance sheet is a very precarious task and markets are bound to become increasingly unstable Because of the insanely high uncertainty when it comes to monetary policy.
Long on bonds with tanking yields, Short global markets






















