$tlt $spy Rising yield curve could be black swan (see comments)So, the FED wants inflation anchored at 2%. They're gonna cut to negative rates if they have to. LMAO! No wage inflation, ecnomony deteriorating and you want to add wage inflation and price pressure to stocks already stagnant natural earnings growth? Maybe they can continue to manufacture earnings, but I wouldn't bet on that. This isn't the 90's or 95' in particular. No where close to similar situation. Good luck!
DGS10 trade ideas
US Interest rates headed higherFor the first time since the 1980s, the US 10 year treasury yield is showing a sustained breakout above the red line.. the 120 SMA in this chart.
Since US interest rates were trending lower over 30 years, this is monumental.
With the risk of a tariff war growing, and oil prices projected to rise to $90 in the coming months, we can see how this is all coming together.
The world is awash in debt. When this debt comes due, will businesses be able to re-finance? This is going to put the big squeeze on global growth.
The transition to higher rates is happening and will be painful. If rates rise quickly... highly likely.... that pain could prove fatal for many businesses.
Winter is coming...
What does spread do here?Does the 10-2's continue on to negative area, which is usually predictive of a market being close to top or is it at a bottom right here? Financial stocks not reacting well to stellar earnings. Some negative divergence on RSI. Is the tolerance level due to massive debt now higher? What do you think @allstarcharts I'm torn. History has shown that this becomes a problem for markets when the spread goes negative. Still has 42 bps before that happens. Is it different this time?
10 year note yield channel break and its effect on indiceswww.tradingview.com
Using a parallel channel tool, I drew a precise line using gaps as starting points and end points, middle channel also using gaps as reference.
I always compare my charts to DXY, USDWTI, DGS10-DTB3 (yield curve) and market indices, particularly SPX.
Comparing the 10 year note yield to SPX painted a clear picture. Still, I've yet to test this. If not mistaken, we will see a correction starting this week. Even what is today's bull market since 2009 will be topping, if correct of course.
Also to note are double tops and the subsequent drop and what happens to SPX. I did no mark this, but you can try and find these double tops.
If you look even closer, other details an be observed, particularly during flash crashes such as in May 6th 2010 and June 23rd 2016 (Brexit).
There are other flash crash dates that can be found, but I'll leave that to you.
US Yield Curve Spread: Self-MadeYield Curve Spread for each economy: 10-Year Treasury Constant Maturity Minus 3-Month Treasury Constant Maturity (T10Y3M
Also available free at fred.stlouisfed.org
Background:
Yield Curve Spread for each economy: 10-Year Treasury Constant Maturity Minus 3-Month Treasury Constant Maturity (T10Y3M): fred.stlouisfed.org
A valuable forecasting tool for predicting recessions 2-6 quarters ahead. The yield curve is defined as the difference (or spread) between the 10-year Treasury note and the 3-month Treasury bill.
* A slowdown or fear of a recession causes the people to demand higher interest rates for short-term borrowing.
*There is no guarantee that an inverted yield curve will always predict a recession; but when it does be vigilant and look for a strategy favoring a weaker dollar or currency pair.