Another Market Myth Exposed The Nasdaq index has now declined by 10% from its November high , prompting the mainstream financial media to call it a “ correction ” whatever that means. I think they call it a bear market when it is down by 20% . Many stocks have already fallen by at least that amount, and realistically, it’s all semantics anyway. It’s early...
One of the biggest things you should understand as a trader is prices don’t just go up and down (well, maybe on a really small timeframe they’re more chaotic). They’re usually backed by some actions, data and things happening in other markets. This all creates general economic tendencies. But how do we know what affects dollar/currency pair and how? Well, here is...
TVC:US10Y With the wild drops in the market over the last few weeks, I have considered turning a greater percentage of my portfolio to bonds. Listed in this article are the findings of my research. Todays Yield closed at 1.341%, investors receive a coupon of $1.375 semi-annually. Wow...That is pretty discouraging. With insanely low interest rates this year,...
You will hear many people in finance and in trading tell you that the bond market is the most important market to understand because it influences every other market in the world… particularly the US Bond market. In this video I am going to try and explain what the Bond market is for anyone new to trading or still learning about the bond market and then I will...
Asset classes - Part 1 - Stocks, Bonds, Commodities and Currencies There are several types of asset classes which group together investments with similar characteristics. However, each asset class also has its own particular features that it does not share with other asset classes. Most common asset classes are: equities, fixed income, real estate, commodities...
Intermarket analysis is an often neglected and overlooked type of analysis among traders. However, it's a powerful tool that can help you anticipate future price movements by following the performance of other, closely-related markets. Intermarket analysis refers to the analysis of other asset classes that can provide valuable and actionable insights into related...
Inexplicably, upon publishing this post, the Title Chart becomes distorted beyond recognition thus, all references are to this Original Chart - below Do markets trend on the medium term (months) and mean-revert on the long run (years)? Does Black's intuition bear out that prices tend to be off approximately by a factor of 2? (Taking years to equilibrate.)...
This chart shows three times during the past three decades in which the yield curve inverts. An inversion is when the rate of a shorter term debt security is higher than the rate of a longer term debt security. This is identified on this chart in 2000, 2006, 2019. Treasury Debt Securities: Bill; less than one year to maturity at issue. Note; greater than one year...
A bond is a contractual agreement between an issuer and the bondholder. Owning a bond is like enjoying a stream of future cash flows. There are several important features that every bondholder must know before acquiring them: • The bond properties – issuer, maturity, principal, coupon rate and frequency, and the currency in which they are denominated. These...
Hello fellow traders and dear padawans. The equities market has been hit very hard the past 3 weeks or so, specially growth stocks. I think it is important to address what is happening behind the scenes that caused the selloff in the equities market so that many of you can better understand what is going on. This is a very basic explanation of macroeconomics and...
Mum and dad buy & hold (also known as "buy & forget" and "buy & hope") gets heavily promoted as some holy grail. Take advantage of the market rewards with the least effort, stress, and without having to pay fees to money managers, fees that will eat your retirement. To Bitcoin holders this is the greatest thing and they dream of wealth, they think they found the...
Quick Tutorial video to show how I add and use other instruments like DXY and ES1! to track correlations across markets. These correlations are a powerful confirmation to help identify behaviour across markets, to give confident in the forex or futures instrument you are trading. I briefly mention Support & Resistance zones in this video. You can learn how I...
Holding periods are at record lows and people are whining about it. Time to talk a bit about who participates in the market. 1- Liquidity ********************************** Something like half of the trading volume is done by specialists & HFT firms as well as a couple of scalpers which is a name for retail traders that hold for a few minutes to gracefully...
So we are probably all aware of the stock market sell off that is currently occurring. It's likely due to a combination of things... The reflation trade reaching a short term top... The holiday weekend profit taking... And a bit of a rotation out of tech to value. Stocks have been hit pretty hard. And when stocks are hit hard... The financial media have a...
What is High Net Worth Investing? In order to understand what high net worth investing is, you need to understand what a high net worth individual (HNWI) is. A high net worth individual, as the name suggests, is a wealthy individual with at least $1 million in liquid financial assets. In the financial industry, the high net worth status is based on how a bank...
The two year has remained relatively flat since this week's open. However it did gap up significantly. Why is the 30 year falling (see linked article) while the two year remains consistent? Bonds of different maturities care about different things. In particular, the shorter end of the spectrum cares less about the long term effects of inflation and the...
3/3/20. Weekly Charts of TLT (20 yr bond ETF) vs TNX (10 Yr Treasury yield) compared. In order to crush high inflation, They raised interest % in late 70's - early 80's. As a result, the rate peaked in 1981 and 10 Yr Yield was near 16% and mortgage rate was 17-18%. People were getting 9% interest on simple CD from the banks. Today, 3/3/20, The 10 Yr yield...
The 10-Year US Treasury Yield made new all-time lows this week. History was made as it went below 1%! On TradingView, you can chart Government bond prices and bond yields around the world. Bond prices are important because they can highlight risk appetite and desire for yield. To get started with charting Government Bond Yields, search for these...