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10 Yr T-note $TNX Break-out$TNX has broken out of its long-standing 35 year descending channel, first time breaking out above 50 EMA and pushinf towards 100 EMA since 1994. The descending channel includes both the dot.com and housing bubbles without breaking above the 50 EMA. Given add'l rate hikes on the table and bloated CB balance sheets, extreme supply of money in the markets, overnight reverse repo in the trillions... there's an incredibly long way to go walking back unfettered money printing, unless the Fed gives up and lets inflation run unabated. Either way, TNX isn't done climbing. Expecting a bear market rally to bring it back for a 50 EMA retest is reasonable and normal; however, the broader macroenvironment is unhealthy and there's more room for these yields to run this year.
TVC:TNXLong
by R0MM3LL
An inversed relationship There is a long running inverse relationship between gold and yields. As a non-interest bearing asset, gold becomes less attractive when yields, or real yields in-particular, go up. Using the TIPS (Treasury Inflation-Protected Securities) and inverting the price (price and yields are inversely related), we get a proxy for real-yields. With this, we can look at the 10-year chart of gold prices vs yields and the inverse relationship becomes clear now-- rising real yields push gold prices down! As gold is quoted in US dollar, the strengthening dollar has added salt to the wound, further weakening the price of gold. On a shorter timeframe, the 1875 handle seems to be of a significant level, providing the previous levels of support and resistance. With this support level breached last week and a retest this week, coupled with the rising yields and a strong US dollar, we see further downside for gold from here. Entry at 1875, stop above 1960. Targets are 1762 and 1680. Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.
COMEX:GC1!Short
by inspirante
US10Y-US02Y Yields Are Steepening NOWAhead of incredibly important CPI data to be released tomorrow, we are seeing yields steepen in a very dramatic fashion. In comparison to each of the last 3 inversions, this one is not even close to the past. It is important to understand that when yields steepen , it systematically leads to downside in the SPX/NASDAQ. It has been the indicator of almost every recession since 1980 . Now we can't jump to conclusions just yet, we can only try to anticipate what comes next. Tomorrow key CPI data gets released which is why markets are selling off in the face of it. This data will be the reason for the next move up or down. Focusing back on the chart, we can see just how far yields have deviated from the 200MA. In comparison to the past, this is the farthest divergence on record. IF yields were to retest that 200MA, it would almost certainly lead the markets down a very dark path rather quickly. We are seeing a clear momentum gain on the RSI to match this. Now let's take a look at the previous two inversions not shown in the chart; (2000, 2008) First, take note of where the 200MA is here in comparison to now. Second, notice when yields are Steepening the SPX is falling. They have an inverse correlation. Take a look at how extended the NASDAQ is still; The same can be said about the SPX; There are very significant moves being made in the markets at this moment, and it will take absolute diligence to ensure survivability if the markets take us down a dark path ahead. For now, pay attention to the data tomorrow. If it is optimistic, we could see some short-term relief. If it is worse than anticipated, watch CLOSELY! The projected CPI tomorrow is 8.4% . That's your best case going into tomorrow (April 12th) . Use it as a measure.
TVC:US10Y
by NoOneWhoIsSomeone
4
Yields are on the verge of breaking-out.In log mode, we can clearly see the trend of yields dating back to the late 1970s. Consistently lower yields on both the 2 year and the 10 year government bonds. Representative of both the long and short duration bonds and their yields. What we can see happening here is a breakout of this downtrend. We are already at between 2.5-3% on the 10YR and the 2YR yield. The Federal Reserve's planned tightening schedule combined with the inflation panic will drive both of these metrics up into the 3% range and beyond. The only way yields could reverse here is through seeing a risk-off move from equities into bonds which would drive up bond prices and in turn, drive down yields. Similarly, higher-yields could tempt investors into bonds at a point in which many stocks have already entered a bear market and many are set to underperform. Market breadth is set to shrink dramatically as equity bulls focus their efforts into a narrower set of large-cap stocks. The FED has an interest rates decision next week amd therefore this quarter will be crucial in determining the direction of the markets.
TVC:US02Y
by RogueEconomics
The #1 Chart to WatchLadies and Gentlemen, please take your seats. (...the music stops) Okay, thanks for playing. Good luck to all of you! The investment strategies that have worked for the last 40 years will no longer work. The true bear market is here. This will absolutely 100% NOT be a recession that will be forgotten easily. It most likely will be a depression via stagflation which we have never really experienced long-term. Our leaders won't admit it but *News Flash* the Supply Chains are NOT getting fixed like they were before. China has no incentive or interest to fix them and we are the world's biggest debtor. We got 20% of all our imports from them in 2021. That doesn't sound like a lot but that 20% is involved in the supply chains of 70-80% of our goods. The Chinese gov has already warned its people of the incoming food shortage and have been far more honest with their people than our Western leaders have been. Good luck in the New World Order! Courtesy of the World Gov. Summit 2022, the IMF, World Bank, etc. (Not Financial Advice, Just what I see.)
TVC:US10YLong
by MonetaryRebel
1
US10Y-US02Y Time To Pay AttentionEveryone is talking about yields inverting and the recession that follows it. Here I am going to do a quick rundown on how to actually use this information to your advantage. It is not the yields INVERTING that is cause for concern. This is only the first step of a potentially long process. It is when yields start STEEPENING that there is real cause for concern. There is no question that yields inverting is a recession signal, it has historically proven itself to be since the 1970s. But if you think the market is ready for a recession right at this moment of inversion, you are misinformed. Pay close attention to when the yield first inverts, to where/when the market actually enters a recession. It is not until after yields STEEPEN is when there is real downside. Now, this brings us to the chart, where we are potentially seeing the first signs of steepening. Not only from the yields themselves but from the Bullish Divergence on the RSI. As yields have inverted (gone down), the RSI has trended up, showing a clear divergence. Also, notice how far yields have deviated from the 200MA. If you compare it to 2000, it is potentially showing a very similar picture Even in august of 2019 we see the same divergence which signaled yields to begin rising. Which told us it was really time to pay attention in the coming months. These are just a few insights to hopefully help you understand what this all means in the bigger picture. Right now more than ever is the time to pay attention and to stay vigilant. Hope this helps! Here is my initial analysis on yields tightening, as well as the Yield Inversion in relation to the SPX:
TVC:US10Y
by NoOneWhoIsSomeone
Australian bond yields rise after RBA leaves key rate unchangedThe market is currently pricing 7 rate hikes ending in the Q2-Q4 2023 range. To quote Statement by Philip Lowe, Governor of the RBA: "Inflation has increased in Australia, but it remains lower than in many other countries; in underlying terms, inflation is 2.6 per cent and in headline terms it is 3.5 per cent. Higher prices for petrol and other commodities will result in a further lift in inflation over coming quarters, with an updated set of forecasts to be published in May. The main sources of uncertainty relate to the speed of resolution of the various supply-side issues, developments in global energy markets and the evolution of overall labour costs. Financial conditions in Australia continue to be highly accommodative. Interest rates remain at a very low level, although fixed mortgage rates for new loans have risen recently. The Australian dollar exchange rate has appreciated due to the higher commodity prices and, in TWI terms, is around the level of a year ago. Housing prices have risen strongly over the past year, although some housing markets have eased recently. With interest rates at historically low levels, it is important that lending standards are maintained and that borrowers have adequate buffers. The Board's policies during the pandemic have supported progress towards the objectives of full employment and inflation consistent with the target. The Board has wanted to see actual evidence that inflation is sustainably within the 2 to 3 per cent target range before it increases interest rates. Inflation has picked up and a further increase is expected, but growth in labour costs has been below rates that are likely to be consistent with inflation being sustainably at target. Over coming months, important additional evidence will be available to the Board on both inflation and the evolution of labor costs. The Board will assess this and other incoming information as its sets policy to support full employment in Australia and inflation outcomes consistent with the target." It is important to note the change in rhetoric with the governor mentioning that inflation could head higher with no mention of when the RBA expects to hike rates. For the full statement, visit the official RBA website: www.rba.gov.au The CAPITALCOM:AUDUSD broke out of key resistance with the price increasing likely to roll over back to pre release price.
TVC:AU10YLong
by GrizzlyBearBee
10 YEAR YIELD GOING HIGHER MOST LIKELYIn the current high inflation environment we are in and with the Rus-Ukr war pushing energy and other commodity prices higher and higher, we can all agree yields on bonds have every right to move way higher then we have been seeing the past few years. The peak of the 'Tamper-Tantrums' back in November 2018 (Seen with black arrow) we can see the 10 year yield was higher than current levels. This was also when the fed wasn't that eager to release a 9 trillion dollar balance sheet back to market and when inflation levels were no where near what we are seeing (and feeling...) today. I do think we could be seeing the 10Y yield trying those levels (hit a little over 3% during those times) in the upcoming weeks. I do think the market will be ahead of the Fed, and push it to move higher faster. We may even break the 3% level.. especially if there is a hyper-inflation panic. Faster Bond movements could drag the market down (especially high flyers, tech stocks, etc) as e have seen in the recent past. We had a 2y/10y inversion last week which could be a leading recession indicator. In any case, be sure it's the Bond markets that will be setting the tone. Trade with caution :)
TVC:US10YLong
by LEO_IAMNOTUNCERTAIN_55555
The US10 YR Yield is Getting Very Close to it's Projected TargetLast year I uploaded a series of charts tracking the US10 Year Yield from it's Bottom to where it is now the US10 Year Yield so far has reacted exactly how it was planned and it dragged the DXY up with it; However, the 10 Year Yield is now reaching very close towards it' target and from there we may see a Bearish Reaction that could eventually be followed up by a retrace back down to around the levels of 1.12% which may in essence also signal a reversal in the DXY and a short rally in the riskier assets. I may also consider going in on the TLT soon too as that is also getting down near levels of projected interest.
TVC:US10YShort
by RizeSenpai
Will the Bond Market Continue to Sell Off??Bonds have reached a relative high at 123'01 to the tick then promptly rejected this level. A red triangle on the KRI confirmed resistance and we headed straight back down to through the 122 handle to finally find support at 121'28. We are currently seeing some support here, confirmed by a green triangle on the KRI. However the Kovach OBV has taken a steep dive south suggesting the bear rout is about to pick up again. If so, the next target is 121'00, then 120'14. If we are wrong, we must break through 123'01 before we can consider higher levels.
CBOT:ZN1!
by quantguy
Unchartered Territory-TNXAnyone who thinks they know for sure what's going to happen in this market should follow price action very, very closely. TNX just closed the month of March by very bullishly crossing the monthly cloud. Since the 1980's interest rates have been in a down trend. TNX could have crossed the monthly cloud bullishly on a couple of occasions but it never had the power to do what it did this month. What happens now? Here are the times TNX could have had the strength to cross the monthly cloud bullishly but it got rejected: Here is this months action: Looking at it from a different angle...below is the monthly chart of ZN. When interest rates rise, ZN futures goes down. Does a 6% Interest Rate sound crazy? Don't break that neckline!
TVC:TNXLong
by Vixtine
7
My bet against Yields and for the Stock MarketsThe US government bonds are currently on everyone's lips. Wherever you listen, you hear the word recession and people sometimes talk about the "big crash". This is due to the currently enormously rising interest rate curve. However, I think that we saw our peak in 10-year government bonds yesterday and I think that the 10-year yield curve will now start falling. This is all of a technical nature and should now lead to a sell off to the 61.8% Fibonacci level which should bring us back to the 1% levels. This is enormously good for the stock markets and especially for technology stocks. I think that we can still expect a big surprise from the central bank and that exactly what very few expect will happen. I'm betting against government bonds and for that I'm betting everything on growth stocks over the next 2 years. This is no financial advice.
TVC:US10YShort
by RT_Trading_
Gold short opportunity - RISKYHi Traders, Having been a by stander for the last 4 weeks I think now would be a good time to possibly have a shot at shorting gold. RSI is also above 80 on the daily chart. After a potential double top and touch of the upward channel line this would be a good risk to reward with 5 targets set out below. This is not a quick trade, or at least it shouldn't be. Catalysts for this move: War ending Rates increasing US10 yr yield increasing. This is a very risky trade considering the market at the moment. Please us caution.
OANDA:XAUUSDShort
by Username_for_trading
8
Growth vs. Value: Skating to Where the Puck Will BeHockey legend Wayne Gretsky famously said: "Skate to where the puck is going to be, not where it has been." This sometimes applies in investing and trading. Towards what object have investors been skating, figuratively speaking? Currently, financial media, fund managers, and commentators have been emphasizing the opportunities in value over growth for several months. And for good reason: Energy, a value / cyclical sector unloved for about a decade, has outperformed every other sector this year by a huge margin. It has risen by approximately 20.5% since January 1, 2022. Even it's uptrend channel could not contain it (although it looks to be consolidating at the moment or perhaps mean-reverting). Increasingly, market participants have been "skating" towards value areas and away from growth for over a year now, as anyone who has been burned by long trades in tech / disruptive innovation knows. For example, a spread chart (also called a ratio chart) of ARKK/SPY shows just how dramatically growth has struggled. ARKK is a well-known US ETF containing high-beta stocks typically categorized as disruptive-innovation stocks, i.e., high growth names. This chart evidences just how much growth has struggled vs. the S&P 500. Notice, though, how this spread chart shows how close to major, long-term support the ratio has moved. Examples abound of high-growth names having been crushed in powerful bear markets in those names. Some of them are even top names with innovative products and services and an impressive record of earnings / sales growth: Square ( NYSE:SQ ) has declined about -68% from all-time highs, Upstart ( NASDAQ:UPST ) fell about -81% from its high to its low in late January 2022, and ( Roku ) dropped about 78% from its peaks. Even large cap tech not gone unscathed: Facebook NASDAQ:FB suffered a nearly -50% decline after a huge earnings / guidance disappointment. But in general, large-cap tech has been the exception in growth until the selloff this year. While growth / tech in general has struggled for months, large-cap tech names such as GOOGL, AAPL, MSFT, and NVDA have outperformed. Even AMZN's sideways move for about a year should be considered outperformance relative to other high-growth names as shown by the ARKK chart above: see the chart below, which is a relative chart of AMZN vs. ARKK, revealing that even with AMZN's lengthy sideways move, it has dramatically outperformed growth / tech names more generally. Markets are in constant flux. So often, just when the little people (retail traders like me) take notice of a powerful new trend or outperformance, it ends. So I'm trying to watch for where markets are moving rather than focusing on where they are. In short, is growth bottoming out relative to value? Here are a few charts to consider. 1. The main weekly chart above (also copied below) is a spread chart showing the ratio of NASDAQ:IJT (small-cap growth) vs. small cap value. Notice how close to major long-term up trendline support the ratio has moved. And the weekly ratio is also right at support at March 2021 and May-June 2021 lows. The RSI for this relative chart also shows that it's oversold to 33.65, a level that only appears in multi-month (and often multi-year) intervals. Even the two RSI lows in 1H 2021 occurred 2 months apart, but this is the exception looking back longer term. 2. Large-cap growth is right at support at a long-term uptrend line. See the weekly spread chart of the ratio between XLK/SPY. AMEX:XLK is a US ETF that is heavily weighted towards large-cap tech. 3. Equal-weighted growth vs. equal-weighted tech RYG/RPV is also very close to long-term upward trendline support. 4. Interest rates are nearing long-term downtrend channel resistance—at the upper line (the actual downtrend line). Interest rates have soared powerfully since mid-2020, and the Federal Reserve has hawkishly signaled coming rate hikes, and market participants have behaved as though rates will keep on going to the moon—by selling tech / growth, which struggle when rates rise b/c of discounting of future cash flows used to value such names. The viewpoint that rates could turn around in the near future seems radical, contrarian and unreasonable. But consider this chart below. Could rates turn around just after a large move just after millions of market participants have been flocking towards value names that outperform in rising-rate environments? Some well-known experts have already taken this view. www.cnbc.com It seems priced into the market right now that the 10-year yield could continue rising, that the interest rates could even breakout higher above long-term downtrend resistance, and that the Fed is likely behind the curve in controlling inflation. It seems consensus that value could continue to outperform long-term, and that growth could break even long-term support levels and continue to plummet. But if this is priced into the market, shouldn't one consider buying what's already priced in? Especially because maybe what is priced into the market will not last. Thinking about where the "puck is going to be" may suggest that tech / growth is making a multi-month or multi-year low or that interest rates are going to pullback in the next few months, allowing tech to thrive again.
NASDAQ:IJT
by SquishTrade
4