Energy ready for prime-time?An updated view
Pattern taken from reverse symmetry.
Elliott Waves
Stochastic RSI Oscillators
The 12 Month oscillator pushes everything upwards. Since the 3M oscillator is at it's top, we expect a short drop until mid 2023. It will be short because of the effect of the 1M oscillator as well as the 12M one.
Oscillators tell us that it is probable for price of energy to drop until Q2 of 2023 and then begin it's rally. Energy could very well increase now. The ABC Elliott wave shown on the main chart is alarming.
An alternate scenario is this.
A 5-step Elliott wave.
Either of them could play out.
Tread lightly, for this is hallowed ground.
-Father Grigori
US10Y
Financial (in)stability mechanismsI have posted many times regarding volatility, especially the VVIX&VIX relationship.
There are times when mechanisms need to activate to stabilize the economy, the psychology, the society. Recessions, wars, pandemics are periods that may justify such actions.
It is wise for an investor to understand pressures and their direction. The motto "Don't fight the FED" and "Don't go against the trend" should be applied everywhere.
A very rapid growth like in 2016 needed suppression, or else equities would have gone parabolic.
Increasing yields makes growth harder. So the thought process back then was to suppress growth. I have some theories on why they wanted growth suppression. My ideas are extreme as they are, so I will try to put them into the suppressing field.
After this parabolic growth that occured backstage, the recession nobody remembers ocurred.
Yields suppress growth.
Yields as a stability mechanism.
Yield increases however can cause the opposite problem, money scarcity and liquidity problems.
Yields cause recessions.
Yields as an instability mechanism.
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Now onto VIX.
This year's recession was a time when financial stability had to occur to calm the markets. Back in 1929 we didn't have such mechanisms. The main chart, VVIX, shows us that there is substantial volatility management backstage.
While I don't know the mechanisms for SPX and VIX stabilization, I have some theories. There are now massive hedge funds that can easily stabilize the equity/derivative market. VIX is a traded index, so hoarding contracts could in theory artificially change the VIX value. That is why I advised on volatility analysis by comparing VIX with volatility indicators.
Hedge Funds (amongst other mechanisms) suppress volatility.
Smart Money as a stability mechanism.
I have posted before about the VVIX/VIX chart and how it can help us analyze SPX growth stability.
So the question arises, how much and for how long have markets been manipulated? Surely in 1929 there was nothing one could do to stabilize the markets. That is why the recession was so deep and painful. We had no brakes.
Manipulation/stabilization works in a consistent manner, when VIX peaks we suppress it. Suppression works by making VIX more predictable and less spiky. So inherently VIX manipulation decreases VVIX. With these charts we can see the stabilization mechanism in action.
In the middle of the 2008 recession, in May-June we had this period when psychology briefly changed from pessimism to optimism.
It is the denial phase of psychology. More about that in the "VIX | The effect on SPX" idea linked below.
It is this vicious cycle during the VIX manipulation period that drags us further down inside the recession.
VIX suppression cycle pulls economy into a vicious cycle.
Stability mechanisms as instability mechanisms.
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Onto some speculation:
Perhaps we are in a long-term recession, since 2018. Again, look into "The Cake is a Lie" idea.
Back in 2018 we were in a recession while equities were rapidly increasing. Now we are growing with equities dropping. This is nuts!!!
Look at this VVIX/VIX chart comparison.
In this chart I have hidden the price of VVIX/VIX and left just the EMA Ribbon. That is what we live through now. I drew a retracement from this specific point in time so as to better pinpoint the possible targets for VVIX/VIX.
This chart suggests that we have never went through the crisis since 2018. I know this is crazy to say, but look at this chart below.
RSI divergence confirms that. Perhaps the RSI of SPX correlates better to the VVIX/VIX chart.
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Conclusion:
So where does this leaves us? The fact that we have passed through two periods of upside down phenomena (2018 and 2021), when equities were increasing in a recession, and vice versa. This troubles me, as to how much is hidden. How big of a problem are we in and we have just not realized it yet. Moral of the story again? Don't believe what you are told and what you are shown. Don't listen to me as well. Do your own research.
There may still be massive volatility ahead of us. VVIX is suppressed by more than 30%. If VVIX returns to normal levels ~120 and the VVIX/VIX targets are correct, this means that VIX will increase 3.5x from what it is now. As a number it makes sense because it takes us to the peak of the 2020 Black Swan. VIX has every possibility to go incredibly high.
QE and Stabilization Mechanisms themselves have caused this fog. In our attempt to stabilize the economy, we have clouded our vision.
The suppressing field will be shut off, on the day we have mastered ourselves. On the day we can prove, we no longer need it. And that day of transformation, I have it on good authority, is close at hand.
-Dr. Breen
US10Y 🇺🇸 U.S. 10-Year Interest Rate History (1913 - 2022) One of the biggest "shocks" in the 22' financial markets is the breaking of the long-term (weekly) trend in Interest Rates — specifically the U.S. 10-Year Treasury (US10Y), which has gone through now two long-term trend cycles since it’s history dating back to 1913.
Given the inflation fight that the Federal Reserve is currently waging, while at the same time keeping in mind the structural debt-load that the U.S. 🇺🇸 is current burdened with, this begs the question can rates actually go higher from here?
While we do not know the answer as to the actual trajectory of interest rates into 23’ and beyond — what we do know is that given the structural debt load, we can speculate that at some point rates will likely be forced lower as a proxy of stabilizing inflation and also total debt servicing obligations of the U.S. Government.
Also keep in mind comments by J. Powell and the Federal Reserve as they have been preparing investors for a new macro regime of “higher for longer” .
Should this actually play out and not just be the "hawkish tone" of the Federal Reserve that is helping to push interest rates higher, investors must consider the ramifications that could come IF we have truly entered a new (rising) interest rate regime that includes structurally higher rates as part of the next 40+ year historical cycles.
Here is the same chart of the (US10Y) paired against the backdrop of other macro indicators including Federal Reserve Balance Sheet, as they give us insight as to both the bull and bear thesis for yields moving forward:
U.S. 10-Year (US10Y) vs. Fed Funds Rate (FEDFUNDS) 📊
U.S. 10-Year (US10Y) vs. U.S. Inflation Rate YoY (USIRYY) 📊
U.S. 10-Year (US10Y) vs. U.S. Federal Debt Total Public (GFDEBTN) 📊
U.S. 10-Year (US10Y) vs. U.S. Federal Reserve Central Bank Balance Sheet (USCBBS) 📊
U.S. 10-Year (US10Y) vs. U.S. Liabilities & Capital (WRESBAL) 📊
U.S. 10-Year (US10Y) vs. S&P 500 (SPX, SPY) 📊
U.S. 10-Year (US10Y) vs. Dow Jones Industrial Average (DJIA, DIA) 📊
What is your take on the forward trajectory of interest rates?
Have we officially broken the 40+ year downtrend on structurally low interest rates, given the potential for entrenched inflationary pressures within the U.S. economy?
Or, will rates be forced lower as structural debt obligations of the U.S. are far too great to support the notion of "higher yields for longer"?
Let us know your thoughts in the comments below! 👇🏼
M2SL | Duplex Megaprinter 8000 ™Back in the 80s, we thought that by 2020 we would have an automated oven and flying cars. All we got is a money printer, and we liked it. We played with it a lot. And this year for Christmas, who wouldn't like some more printer ammo?
Since high inflation cannot ensure social stability, we have only one option. Lower inflation. That is the motto of the FED, the hope of every investor, a lower inflation figure. The consumer is overwhelmed from the increasing cost to survive . The inflation war is nowhere near it's end. We have gone from commodity inflation to services inflation, to the everything inflation. We haven't managed to stop it. What if there was another way?
Actually there is another way. If you break the oath of "never read the news" and actually read the news, you will realize that the average consumer is getting the help they need from grants. Governments throughout the world have found the way for social stability. They simply buy us off.
Record high electricity bill? No problem, here is a grant, the government is paying a percentage of the bill as a help.
Expensive fuel? Here are 100€ in fuel discount to go to work.
It is like the best Christmas ever. Businesses get to enjoy 100% of the earnings they want, consumers consume, and governments have social and financial stability. They just have to keep the game going, keep the printer full of ink. Everyone is happy. One could say that this perfect scenario we are in cannot fail. And even if it breaks, we keep the printer rolling.
Sometime in the not-so-distant-future of course, something could break. We have just moved the problem from the consumer to the investor/corporation/government. We have gained some time. It is just incredibly difficult for me to understand what could break if this game goes on and who will take the dive. At what point will this printer stop helping us?
Right now it helps many. Also go out and talk with people, almost nobody talks about inflation as a problem that could completely destabilize the global economy. They just care about the immediate issue, that everything is expensive.
We are humans, and not a very wise kind. We are an infant species (like Dr. Breen said). Even now that we realize what we have created, and try to solve it, we do it in a fashion that will ultimately turn against us. We buy out everyone and everything, we have made humans more dependent. With all that technology around us, I realize that we are incredibly fragile. We haven't managed to be empowered from technology, we are swallowed in it. And we hate the word Plan B, imagine how trapped we are in when we don't cover our bases.
We buy out our problems because we search for the easy way out. That's the reason we made the printer in the first place. We needed to solve one issue, ignoring the future repercussions.
After all that epilogue, I will now add the prologue. This idea is upside down, like everything around us these days.
On the main chart, we see that we have found support on the weekly ribbon.
The 1M (and 2M) chart suggests that we are heavily supported from below.
Do note that dropping oscillator on money supply does not mean significant price drop. Since money supply increases exponentially, a bearish oscillator suggests that we are on the upper side of the trend.
This chart shows us the Reverse Repurchase Aggreements.
We have RSI divergence, and stochastics dont help the situation. RRPONTTLD dropping is signaling QE.
As SPY_Master stated in this idea, this chart shows us the effort the FED does to fight inflation.
Yields show a similar picture. We are under significant resistance from the 200EMA in the 2M chart. Stochastics print a bearish signal.
CURRCIR/M2SL may be printing a bull flag.
What will be the effect if currency-in-circulation increases compared to money supply? How will prices and inflation react? We have already had significant increase in the past year in the ratio.
US money supply is showing signs of increasing, or at least stagnating. This chart comparing US and EU is alarming...
Tread lightly, for this is hallowed ground.
-Father Grigori
Are U.S. Yield Curve Inversions Signaling 2023 Recession? Looking at the Inverted Yield Curve Chart s of the U.S. 10yr Treasury vs. U.S. 3mo Treasury (US10Y - US03M), along with the U.S. 10yr Treasury vs. U.S. 2yr Treasury (US10Y - US02Y) — are yields signaling a topping process? Or, should we even higher yields into 23'?
4-Hour Inverted Yield Curve Chart 📊
Top Chart: US10Y - US03M
Bottom Chart: US10Y - US02Y
Daily Inverted Yield Curve Chart 📊
Top Chart: US10Y - US03M
Bottom Chart: US10Y - US02Y
Weekly Inverted Yield Curve Chart 📊
Top Chart: US10Y - US03M
Bottom Chart: US10Y - US02Y
Monthly Inverted Yield Curve Chart 📊
Top Chart: US10Y - US03M
Bottom Chart: US10Y - US02Y
Monthly Inverted Yield Curve Chart 📊
Bottom Chart: US10Y - US02Y
U.S. 2yr Treasury (Inverted) vs. SPY (SPX ES1!) 📊
Black Line: SPY
Blue Line: US02Y Inverted
U.S. 2yr Treasury (Inverted) vs. QQQ (NQ Nasdaq) 📊
Black Line: QQQ
Blue Line: US02Y Inverted
U.S. 2yr Treasury (Inverted) vs. DIA (Dow Jones Dow Jones Industrial Average DJIA) 📊
Black Line: DIA
Blue Line: US02Y Inverted
U.S. 2yr Treasury (Inverted) vs. IWM (Russell 2000 Russell Small Caps RUT) 📊
Black Line: IWM
Blue Line: US02Y Inverted
Do you think that yields have reached their peak for this Federal Reserve tightening cycle here in late 22'? Or, will we see further rises in yields, putting more pressure on risk assets in the new year (23')? 👇🏼
Yield Curve Inversion Chart Template 📊👇🏼
www.tradingview.com
Inverted U.S. 2yr Treasury Curve vs. Asset (SPY QQQ DIA IWM) Chart Template 📊👇🏼
www.tradingview.com
US10Y The 1D MA50 is the key. So far rejected.The U.S. Government Bonds 10YR Yield (US10Y) has gone a long way since our top prediction two months ago and the update 5 days ago (4H time-frame):
Now back to the 1D time-frame, the price has started rising since the December 07 Low, exactly at the bottom (Higher Lows trend-line) of the long-term Channel Up, around the 1D MA100 (green trend-line). So far this is quite similar to the early August rise. The 1D RSI has hit the 1 year Support Zone twice, again as in the last (August 02) Higher Low.
In order to extend selling the US10Y, we ideally need to see the 1D MA200 (orange trend-line) break, which is holding as Support since December 29 2021, and in that case we will target initially the 2.510% (August 02 Low) Support and then the 1W MA100 (red trend-line).
A closing above the 1D MA50 (blue trend-line) though, should restore the long-term bullish trend and will be our buy break-out signal to enter and target the 4.340% (October 21 High) Resistance. So far the 1D MA50 seems to get rejected.
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You may also TELL ME 🙋♀️🙋♂️ in the comments section which symbol you want me to analyze next and on which time-frame. The one with the most posts will be published tomorrow! 👏🎁
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OECD Leading Indicator vs. Market Cycles - Updated 122022 Today's post is inspired by the work of @CMT_Association here on @TradingView, and is designed to give some insight into financial market vs. business cycle timing:
We will be comparing various assets to the Organization for Economic Co-operation and Development (OECD) Composite Leading Indicator (USALOLITONOSTSAM) for the 🇺🇸.
Keep in mind that readings above 100 (green dotted line) suggest economic expansion to come while readings below 100 suggests broader economic weakness, and likely economic recession based on history.
Given the the index is currently trading below 100 , and possibly continuing to fall — what does this mean for the economic outlook going forward, specifically as it compares to S&P 500 (SPY ES1! SPX), DXY (U.S. Dollar), Federal Reserve Fed Funds Rate (FEDFUNDS), 2/10 Yield Curve Inversion (US02Y US10Y), U.S. Inflation Rate YoY (USIRYY), U.S. Unemployment Rate (UNRATE), Crude Oil (CL1! USOIL), Lumber Futures (LBS1!), Gold (GOLD), Silver (SILVER), U.S. Mortgage Rates (USALOLITONOSTSAM), and possible timing of the financial market(s) recovery?
Let's have a look at some of the charts as they highlight that real economic weakness is likely into H1/23', paired with the potential beginning of a financial asset recovery as the business cycle works through its bottoming process.
Chart Key for Composite Leading Indicator (USALOLITONOSTSAM): 📊🗝
Green Dotted Line (Horizontal): >100 = Economic Expansion
Orange Dotted Line (Horizontal): Current Reading
Red Dotted Line (Horizontal): Historic Danger Zone
Black Dashed Lines (Vertical): Pre-Recession OECD Leading Indicator Peak
If you want a copy of this chart, here is the link to make a copy: 📊👇🏼
www.tradingview.com
S&P 500 SPX 1991-Present (Black Line) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
S&P 500 SPX 2006-2017 (Black Line) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
S&P 500 SPX 2016-Present (Black Line) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
U.S. Dollar DXY (Black Line) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
US02Y Treasury (Black Link) vs. Federal Reserve Fed Funds Rate FEDFUNDS (Blue Line) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
US02Y/US10Y Yield Curve Inversion (Baseline >0%, <0% Curve Inverted = Trouble in Markets) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
U.S. Inflation Rate YoY (USIRYY) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
Unemployment Rate (UNRATE) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
Crude Oil USOIL CL1! (Black Link) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
Lumber LBS1! (Black Link) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
GOLD (Black Link) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
SILVER (Black Link) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
U.S. Mortgage Rates (Black Link) vs. OECD Composite Leading Indicator (USALOLITONOSTSAM):
Here is the updated release schedule for the OECD Composite Leading Indicator (USALOLITONOSTSAM) for 2023: 🗓
data.oecd.org
Learn more about the OECD Composite Leading Indicator (USALOLITONOSTSAM) using the link below: 💡
data.oecd.org
What is your takeaway(s) from these charts? 👇🏼
GOLD SHORT TO 1760Self explanatory as all the analysis is on the chart. But market has grabbed liquidity by taking out 1810 highs and peaking at 1822. Since then Gold has crashed back down below 1778, taking out the last low and changing the market structure which now indicates a sell.
Gold is currently sitting at a resistance zone , which I am looking to short from. However, it is possible since its the end of the week, that market might move a little higher towards 1798-1802 for further liquidity at the start of next week before deciding to melt. Let's see how this move plays out! Drop a follow to keep up with the latest updates.
GOLD SHORT TO 1570📉Self explanatory as all the analysis is on the chart. But market has grabbed liquidity by taking out 1810 highs and peaking at 1822. Since then Gold has crashed back down below 1778, taking out the last low and changing the market structure which now indicates a sell.
Gold is currently sitting at a resistance zone, which I am looking to short from. However, it is possible since its the end of the week, that market might move a little higher towards 1798-1802 for further liquidity at the start of next week before deciding to melt. Let's see how this move plays out! Drop a follow to keep up with the latest updates.
US10Y Critical point, break or hold on the Channel bottom!The U.S. Government Bonds 10YR Yield ( US10Y ) has gone a long way since our top prediction two months ago and the update 20 days ago (4H time-frame):
Now back to the 1D time-frame, the price is exactly at the bottom (Higher Lows trend-line) of the long-term Channel Up, below the 1D MA100 (green trend-line), which is where the last bottom was priced. The 1D RSI has hit the 1 year Support Zone twice, again as in the last (August 02) Higher Low and it remains to be seen if the price reacts with a bounce. So far the move is much weaker than in August.
In order to extend our selling we ideally need to see the 1D MA200 (orange trend-line) break, which is holding as Support since December 29 2021, and in that case we will target initially the 2.510% (August 02 Low) Support and then the 1W MA100 (red trend-line).
A closing above the 1D MA50 (blue trend-line) though, should restore the long-term bullish trend and will be our buy break-out signal to enter and target the 4.340% (OCtober 21 High) Resistance.
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Does the yield curve inversion signal recession?The famous negative curve.
This market concept is used when the US02Y or US03Y operate at higher levels than the US10Y, this behavior usually anticipates recessions, but why does this happen?
The inversion of the yield curve distorts the expected functionality of the financial system.
Under "normal" conditions, raising funds in the short term for investment in longer terms is used to provide positive arbitrage between interest rates on liabilities (paid) and assets (received), a strategy subject to the limits of the rollover capacity of the liabilities and raising new funds.
The availability of assets with higher premiums and liquidity, US02Y and US03Y, makes it less attractive to offer funds for longer terms < US10Y, and more expensive to raise funds for those who demand funds for shorter terms.
So the interest curve is considered a kind of thermometer of what lies ahead in an economy, and it is the graphic representation of how much investors are charging to lend money in different maturities, and once it is inverted, it means that it is more expensive to borrow in the short term than in the long term – an unusual thing, because more distant payment dates mean greater risks for the borrower.
In the US economy, a widely documented fact is that yield curve inversion (i.e., when there is a negative differential between long-term versus short-term bond yields) is a good leading indicator of periods of economic contraction. four to six quarters ahead.
According to data available on the Federal Reserve website, yield curve inversion has preceded every US recession since 1950, with the exception of a false signal in 1967.
There is also evidence that indicators of this nature are important predictors of periods of economic contraction in other countries.
But are there any silver linings to this unusual reversal scenario? Yes, in these moments of greater uncertainty we have an interesting opportunity to buy good companies at low prices.
This is because after the monetary tightening cycle, the economy usually weakens, during this period risk assets suffer, considering that their future projections will suffer due to the scenario, so many of the market participants seek security in bonds, others seek to anticipate the recovery considering that as soon as this CORRECTIVE cycle ends, a new UPWARD CYCLE tends to maintain perennial companies and give birth to many new companies that arise in the face of challenging scenarios.
US10Y Time for it to decide the long term trendThe US10Y is approaching the Higher Lows support of the 2022 bullish trend. Holding it can make the price rebound back to the 1D MA50 (blue line) and the dashed line of its growth zone at least.
A break below it and in particular the 1D MA200 (orange line) can turn the trend bearish long term to the 1W MA100 (red line).
The 1D RSI is on its (oversold) Support level as well.
Follow us, like the idea and leave a comment below!!
How VIX follows SPXVIX is a measure of volatility. It takes the last 30 days of SPX, and measures it's variance.
I would guess that VVIX does the exact same thing to VIX, it takes the recent 30 days of VIX, and measures it's variance.
These two, along with SKEW are some of the methods investors calculate risk. I don't have the technical/financial knowledge on the ways investors can use risk management for better financial decisions.
If we do some "magic" we can transform these notoriously unchartable indices.
I am aware that since VIX takes the value of SPX, gets affected by both the volatility and the price of SPX. So technically from it's nature VIX tracks SPX.
If, for example, we plot the chart (1-VIX) we will see the following:
As we already know, he inverse of VIX follows SPX. Low volatility equals high SPX.
The calculation logic of the chart is: Scale down VVIX such that it is in a similar scale to VIX. Then subtract one from the other.
SPX is scaled down, after we divide it by M2SL.
I would guess that from 2009 to 2019, the growth was sustained because VIX was consistently low.
I also noticed that VVIX this year is incredibly low. One would expect that with such this year's recession that VVIX would also pick up the pace. During periods of very high volatility like the Great Recession, VVIX tracks VIX. Not this year however...
As a fellow trader pointed out quite some time ago:
Now VIX is higher and it's behavior with VVIX is very similar to 2008. We could say that the current situation is much similar to 2000 or with 1970s with stagflation and not 2008. Some things however, they smell foul. The elephant in the room maybe...
SKEW is in an all-time low. This could encourage investors to over-expose. THAT is when crashes happen. Overexposing when liquidity is being dried up from the FED, is a recipe for disaster. Even if we grow from here and everyone wins, who will have the money to pay back all these winnings? Especially now, with everyone investing like crazy, over-leveraging and such. And if EVERYONE is buying, who is selling? "Buying the dip" is part of the equation...
I believe that the bottom is NOT in yet. And since charting indirect stuff like VIX, like housing, yields, energy, all point to the same direction, I cannot ignore them.
PS. The elephant is the collapsed worldwide-production-chain. The elephant is that we are one step away from war or famine. And maybe, just maybe, the elephant is long gone... we just don't know it yet.
And we are talking about how the DOW will not fall. We are convinced that we are in the bottom and we are buying the dip. We are dreaming of more money quicker.
Tread lightly, for this is hallowed ground.
-Father Grigori
I am not a trader, I am a father of a cat named Alyx. Don't take what I say as trading advice.
US10Y Bounce at 3.332% then to 5.376 by Summer 2023The current pitchfork trend is holding and I'm looking at the US10Y reverse at 3.332% this month. I'm also expecting the fed to over tighten or some other news event to drive the US10Y to 5.376% by June 2023. The nature of pitchforks are able to easily visualize the physics of the market and I'll do my best below to explain what I'm seeing.
From a price action perspective the US10Y broke the median from the beginning of time and is coming back to re-test it as support.
As of August 2011 gap down to Jan 2014 price action has respected that median range through today.
In the world of physics, when you have a huge swing away from the median, you'll also have the same energy swinging back in the other direction. Think of a swinging palm tree in the wind.
The same is happening here and is illustrated by capturing the breakdown in Feb 2020 where price quickly broke trend then held the 3 standard deviant move down during the 2020 crash. US10Y has quickly made a move in the other direction and is preparing to breakout with huge force.
Follow the DOW for clues....The DOW is the leader right now...and the saying "Don't fight the Fed" is still very much applicable. There is no pivot, inflationary pressures still exist and the 2022 moves in the US 10 year should not be taken lightly.
If you read over my last post (Nov 15th) you know we are following a path similar to the Dot com bust bear market except this time it will be labeled as the Bond bust.
DJI (DOW) continues to follow the 2000-2002 path of SMA's flattening out over time while SPX, RUT & NDX lag behind DJI. Obviously, no two bear markets are exactly the same but they can follow similar patterns.
In the 2000-2002 bear market you can see the 2 year battle between the bulls/bears wore them both out; just like we have seen over the past year. The 9 SMA or Tenkan Sen has crossed below the 15 & 30 SMA's just like they did during the dot com bust...we then proceeded to re-test the ATH after the crossing of these SMA's before more rejection. I warned in my last post the DJI would probably reach the 35,000 "ish" range and I still believe we will hit this area...I mean Santa is coming to town right? The areas of resistance for DJI are now 35,492.22; 35,824.28 & 36,952.65...I will begin to ladder into the sell side when we get above 35,000.
US 10 Year on a 6 month timeframe-This chart should scare the you know what out of any company or person with revolving credit! The continued hiking of interest rates is not "transitory".
Commodity Index-Inflationary pressures still exist in case you thought we've reached "peak inflation"....the weekly is one scary looking bull flag. Just takes another "event" and watch out.
US10Y - 10Y Bonds: And Reverse Forest RuuunLet's see:
This was the chart I posted this year:
We reached the U-MLH.
This is the stretch to the upside. How ever, it could go further towards the Moon.
But usually, if price get rejected at the MLH's, we see the opposite move. In this case to the downside, to the Centerline.
This is a great opportunity, the second time this year in the 10Y Bonds, which I clearly will not miss.
Additionally this would indicate a bounce in the index markets (S&P500, Nasdaq etc.).And if you pay attention to my S&P Chart, then you know that the Centerline is reached too there.
So prepare for a possible bounce, even it's just temporarily.
US10Y Still bearish at least on the short-termThe U.S. Government Bonds 10YR Yield (US10Y) has gone a long way since our top prediction a month ago:
As you see, the Lower Highs 1D RSI Bearish Divergence, accurately projected the top and the price broke much lower than the 1D MA50. On a short-term horizon, as long as it fails to close above the 4H MA50 (blue trend-line), we will be targeting the 1D MA100 (green trend-line). Only a break above the 4H MA200 (orange trend-line) can restore the bullish trend, towards the 4.330 High as it happened on June 01 2022. On the other hand a closing below the 1D MA200 (yellow trend-line) would confirm the long-term trend switch from bullish to bearish.
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