Bonds
Silver SI - A Simple Trendline and Levels ScalpSilver's price action has been curious, as it started to drop suddenly right at the beginning of February. Lost 5% in a day, in fact.
Gold took a little bit longer to move, and notably dumped on a much smaller magnitude.
I have an open call from mid-January that gold is likely to correct, and it appears to be coming to fruition:
Gold GC1 - Discard Greed, Enjoy the Tranquility of Rationality
The thesis being that the Nasdaq and tech will moon...
Nasdaq NQ QQQ - Reality Will Be a Tough Pill for Permabears
And as it does, metals will dump, and once the stock market is exhausted then the pump cycle will rotate back into metals, and things will really go.
All that being said, I believe that based on Silver's price action that it's dumped for the purpose of short trapping and liquidating longs and is about to make another move up before silver really starts to head down.
A warning on China
Since January 10, the Chinese Communist Party has claimed that there has been 0.00 new Wuhan Pneumonia/COVID-19 cases. This comes after news that the country was absolutely sacked by the pandemic after Xi Jinping threw away the disastrous COVID-Zero social credit lockdown blunder. The after effects were so significant that countries like South Korea were suddenly blanketed in difficult-to-explain smog , which may very well have come from mainland cremation furnaces being on full blast.
What this tells you is that at any moment, any bullish impulse in markets-at-large can be interrupted by big time pandemic problems, up to and including the USSR-style fall of the CCP. So you have to be careful, and you have to be prepared.
Mainstream media is not going to alert you that there's any problems with their darling erstwhile model of the world they want to create: the Chinese Communist Party. They'll leave you ignorant until the disaster is sprung on you like a cantilever and you'll be the one who suffers the regrets.
If you have heavy long positions you should really hedge with 60+ day 10% OTM puts on the indexes/index ETFs.
The call
To understand silver, we have to look at the long term price action.
Monthly
We're dealing with a _very_ wide dealing range between $30 and $12~. '22's low of the year was only $17.50, and any very very bearish scenario below that could see as low as $13.
I have reservations that we see $13. I think that in reality a bear impulse on silver might only go as low as $15, and not for very long.
On weekly bars, the present situation is more obvious.
Weekly
We're dealing with a 10+% pullback with both a trendline and the $25 algorithmic/psychological operation figure that went untouched. Not only did $25 go untouched, but they set a double top there before the curiously-timed dump that gold did not follow.
Thus, I believe that what the market makers have set up to do is to raid the $25.50 level, perhaps in the period around Tuesday's CPI and into the end of February, before silver retreats back towards $18.
The iShares Silver Trust $SLV likewise set a double top, failing to raid the previous daily high by 2 cents.
All the stars are aligning, so to speak, and makes a fine trade long over $25 in anticipation of a Lyft-style fakey trendline breakout:
LYFT - Buy the Dip, Ride the Lift
$22 --> $25.5 is close enough to 15% and in a time horizon that should manifest before February is out.
This play will also knock out a ton of short sellers, while bringing in a lot of momentum traders who like to buy highs.
The MMs may also use this to drag in the fools who think that the USD is done and that their bullion will reign supreme, despite us living in an era when every central bank wants to install its own digital currency and its own CCP-style social credit system.
And thus, if this pump does manifest, you have to mind your greed. Over $25 is a sell and you want to see big manipulation to the downside, because when this Party is very close to being finished, $50+ silver is legitimately coming.
Bonds near reverting its downtrend, $TLTThe 20-year bonds ETF is near a key breakout level that should confirm a new uptrend in bonds.
This should be followed by a breakout above 4,100 in the SP:SPX .
Just look a the bullish divergence between the MACD and the price of NASDAQ:TLT , its a very good signal.
Let's wait for the breakout and follow through.
US02Y about to break its 1W MA50 and start a mega stock rally?The US02Y has been trading on its 1W MA50 (blue trend-line) for the past 4 weeks, closing above it on all occasions. This is a key time for (primarily) the stock market as the last time the US02Y broke and closed below its 1W MA50 (week of December 31 2018), a massive rally on stocks (which on this chart are portrayed by the S&P500 and the black trend-line) was initiated.
This was at the end of the U.S. - China trade war. The 1W RSI also shows that we are closer to that break-out than ever. Will a closing below the 1W MA50 give investors finally what they've been waiting for?
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An overview of the markets Overview of many markets - tech may be the canary for the overall stock market, oil could continue to 84-87 area, Gold is at heavy resistance and Dollar is a strong support, Bonds still look strong and maybe a safe haven play, BTC may tag 30k before all is said and done.
Good luck!
Uninverting yield curveHere we can see Japan is slurping up bonds to hold down oil prices. (vs. USD: Red) (vs. SAR Green)
Simultaneously the us05y (orange) is compressing below the us30y (yellow), uninverting the yield curve and firing off our famous recession signals.
But people wonder why the MOVE index is so wildly off the charts..
% BONDS & INTEREST RATESThere's obviously lots of discussion about interest rates and where they are headed. Today, I'm going to look at long-term interest rates based on the well-known ETF: $TLT . Long-term interest rates are useful as a guide for most people who get a home-loan or longer-dated loans and is usually less prone to manipulation (by Central Banks) than short-term rates.
Bond prices move inverse to interest rates. A rise in bond price means a lower interest rate and vice versa.
📈📉 Let's have a look at the long-term chart. I'm using the weekly timeframe to remove the day-to-day noise.
You can see that since the January 2020 peak, bond prices have fallen. This was when interest rates bottomed and started rising. The bear market in bonds extended to Oct 2022. Subsequently, we have seen a rally in bonds and therefore a drop in interest rates.
The multi-trillion dollar question is: Was Oct 2022 the BOTTOM i.e. has interest rates peaked?
My technical view is that the bearish trend in bonds is still the dominant force. So far the bounce off the bottom does not yet signal a trend reversal. For this to be the case, I need to see TLT move higher beyond 114.
IF price moves beyond 114, I would be more confident in stating that at a minimum there has been a Change in Behaviour. At that price level, the size of the upward move would be the largest since the Jan 2020 top. Larger than the upward bounce that began in Mar 2021 and ended in Nov 2021.
A Change of Behaviour signals that market participants are starting to have differing opinions. It is this change in opinion that sow the seeds as the first step required for a trend change.
If the bond price falters prior to reaching beyond 114, it is highly likely that we have not seen the bottom and higher interest rates should be expected.
Clearly the next few weeks will be crucial in that determination. I will update my thoughts as the price evolves.
US10Y: Rising short term inside its Channel DownThe US10Y is trading inside a Channel Down on the 1D timeframe with the 1D technicals neutral (RSI = 46.172, MACD = -0.046, ADX = 31.478). With the 1D RSI coming off an accumulation that we've seen on the December and January bottoms, we expect the price to rise and approach at least the 0.618 Fibonacci. Our TP = 3.750.
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TLT Volume Spikes UPDATED with ElliotwaveTLT Volume spikes prior to peak, when the fed first started raising rates. Now a volume peak right when the fed has said they will consider a pause for the next meeting. This could mean that the market thinks that rates are going to come down, and that therefore the value of long term bond assets will go up, as well as the value of banking stocks which are currently underwater. Previously, I mentioned that I though that the TLT would be going down, now I am updating this idea to include the notion that the fed may be done hiking for the short to long term, and that the TLT will be going up after experiencing large volume after a down trend.
Clearly April is going to fun for Bears.Its fabulous for me to see each day jargons of bulls rhyming about its their play now. Do not forget the crisis have just led to calm a bit, recessionary riots have just oozed out to take rest. Bond yields will grow further, you see their graphs you would understand they will bounce and traded largely. The markets will crash again don't think twice before going long because thats what makes momentum for bears.
ZB Shatters Resistance Level on 15-Minute ChartHello Traders,
There is a big potential bearish opportunity in the ZB market! The 15-minute time frame just showed a break in a key support level, indicating a potential downtrend. With this technical signal, combined with current market conditions, it's possible that we may see a further decline in the ZB price. Keep an eye on this market and follow me for more updates on potential trading opportunities!"
Tell me what you think
Regards,
The Mehdi
✅US30 BEARISH BREAKOUT|SHORT🔥
✅US30 broke the local rising
Support line and the breakout
Is confirmed because the
4H candle closed below the line
So I am locally expecting a
Move down(after potential
pullback and retest of the broken support)
Towards the target below
Around the 96'16'0 area
SHORT🔥
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DXY | TBONDS | ZB1 |DECRYPTERS HI people Welcome to Team DECRYPTERS
BRIEF Views with connecting DOTS:-
--We are Expecting a DUE Retracement on DXY This week At least to TARGET 1 -
--TARGET 2 will Still be on Cards -
-- ZB1! ( T BONDS YEILD )We are Also EXPECTING them to Rise up as manipulation Move ( 2nd Quarter ).
-- We Also EXPECT LONG TERMS Bonds will Also face INFLOW of MONEY.
--Also peak in rates is probably to be in , so Bonds can Rally .
Stopping Volume Spike TBT. Bull Flag Formation after breakout. TBT, the short TLT 20 year bond ticker looks neutral in the short term and bullish in the longer term. High volume breakout of descending pattern down, and now a bull flag set up. A high volume spike and a stopping bar down has preceded a move up twice over the the last year.
This is speculation over higher rates in the general market and from the fed, which would be correlated with lower equity valuations based on DCFs and opportunity costs associated with being in stocks vs bonds.
Somebody knows something? TLT high volume spike. TLT high volume spike, after short term bullish run.
Declining rate on the us treasury bonds in the broader market have given the 20 year TLT bond fund a boost over the last week. As the rates have been declining on the anticipation of a fed funds pause, the value of long term bonds has been increasing, or moreover moving up for the unrealized loss positions which is what sent SVB to the grave.
Meanwhile; Chairman Powell announced an increased fed fund rate of .25% higher, despite the anticipation of a pause from the general public. At the same time they have proposed a general backstop to the banking system, guaranteeing a full discount swap for these underwater bond assets held by the banks, and guaranteeing depositors their funds are safe to prevent further bank runs.
These actions appear bearish in the general outlook, and in character regarding the necessity of raising rates yet again, as well as the necessity of proving a backstop for the banks so as not fail.
Of course, many have taken these action as a sign of bullishness, as a sign that Jerome Powell and the Federal Reserve board will be pausing soon, as he mentioned this to be the case for the next meeting. The fed funds rate is now 4.83 %.
The TLT high volme spike, on a short red candle is indicative of high interest to the short side at this price level, indicating that the potential future move for rates is even higher still; forecasting that long term bonds will remain underwater; and the banking crises with the potential to continue into the near and medium future.
These are simply my opinions. I am curious to hear what you all think. i am open to dissent, corrections of my errors, and alternative opinions, as long as they are evidenced, logical, and factual. what do you think?