It is my opinion that bonds are going to be sold off in the coming month as countries race to dump the US treasuries that they hold. The stock market is negatively effected when the bond yields increase. When the 10 year bond yield reaches 3.25% and beyond we are at risk of a massive bond sell off. This sell off in bonds will cripple the stock market and a plunge will occur. I dont think we have to worry about the "big one" in the stock market until the bond yields are above 3.25%. I consider anything above that line the "DANGER ZONE". Cue the top gun soundtrack.
Note
Looks like we could be heading into the danger zone tomorrow or early next week. Things could start getting spicy and the market may start taking some significant blows if the yield is above 3.25.
Better grab some popcorn now before this show starts.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.