US10Y trade ideas
US10Y Approaching the 1D MA50.The U.S. Government Bonds 10YR Yield (US10Y) is on a 3 day rebound following a hit on the 1D MA200 (orange trend-line). The 1D MA50 (blue trend-line) is the natural Resistance, but if crossed, we can expect a long-term peak at the top (Lower Highs trend-line) of the Channel Down pattern that started on the October 21 High.
A closing below the 1D MA200 first, would largely be a long-term sell signal that could break below the bottom (Lower Lows trend-line) of the Channel and target the 2.510% Support (August 02 Low) and make contact with the 1W MA100 (red trend-line), which has been our long-term bearish target since October.
The 1D RSI can also offer sell entries on its own Lower Highs trend-line.
-------------------------------------------------------------------------------
** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! **
-------------------------------------------------------------------------------
💸💸💸💸💸💸
👇 👇 👇 👇 👇 👇
Big Four Macro: Bonds Part 2In last week’s macro outlook post we covered the outlook for intermediate and long bond yields. The analysis concluded that the long term technical trend has changed from lower to flat/neutral but that more work (i.e., a higher low) is needed to definitively turn the macro trend higher. That piece is linked below in the related idea section.
10 Year Yield Weekly: After peaking at 4.34% in October, 10s have declined into the first confluence of support. The confluence is defined by 2 channel bottoms, the fibonocci retracement of the last wave higher, an internal trend line (not shown and slightly violated) across the 3.04% - 3.25% highs and the last violated pivot @ 3.25%. Additionally, the move from 4.34% has covered about 100 basis points, consistent with the last two primary corrections.
This is the markets first solid opportunity since the October high to test meaningful support. Either, it bases here for a move back toward the 4.34% October high or fails and cuts much deeper, perhaps as far as the .382% retracement (2.86%) of the entire structural bear market. If the market does successfully base, the nature of the move should offer significant insight into the balance of the year.
Early in my career I was obsessed with Elliott. But after years of effort, I wasn't able to develop it as a reliable trading methodology. However, those years led me to believe that markets do often move in three and five wave sequences. But if I can't immediately identify an obvious primary sequence with a quick glance, then a count isn't reliable enough to use. Even then it is only useful only for context and then only in conjunction with a broader understanding of price volume relationships and trend.
Bond yields appear to have completed a clear five wave move from the March 2020 low to the October 2022 high, leaving them vulnerable to correction and suggesting an intermediate high that should hold for several months.
10 Year Ultra Futures Daily: When a weekly chart is resting at an important juncture, I like to drop down to the daily chart in order to assess the likely hood of it holding or failing. For this view, in order to assess volume I switch from yield to price. Ultras are into a zone of strong daily perspective resistance defined by the confluence of the .50% retracement of the 122-21 - 113-15 decline, the December 2022 high, volume profile, and the June 2022 pivot low @ 121-19. It is also taking more volume to produce gains, suggesting that supply is becoming more aggressive as the market moves higher. Three drives to a high (see linked related ideas) and the failed breakout above the 122-18 pivot all increase the odds of the resistance holding. A show of weakness that destroys the uptrend would strongly suggest a completed test and set the stage for a broader pullback.
Seasonal Tendency (US30Y Futures): Bond prices have very strong seasonal tendencies. They tend to set important intermediate highs early in the year before declining into mid-year.
Conclusions:
The monthly/macro trend has changed from lower to neutral, but yields need to make a higher low before definitively making the case that the new trend is higher.
The weekly chart is testing a solid support confluence. The outcome of that test should help define the markets behavior over the next 3-4 months. The weekly correction that began at the October high does not look complete.
The daily perspective rally that began last October is faltering. Signs of supply are developing and reliable seasonal tendencies are turning negative (yield up/price down). When combined with a strong confluence of weekly support there is a good chance that yields will begin to move back toward their October highs.
The characteristics of that rally will be important in determining if it is simply a test of the October high that eventually leads to a much deeper retracement (2.50% or so) or the beginning of a new leg higher.
A failure to hold the support confluence would strongly suggest that a much larger retracement of the two year old bear market was unfolding. Targets for that retracement would fall in the 2.25-.50% zone.
Good Trading:
Stewart Taylor, CMT
Chartered Market Technician
Shared content and posted charts are intended to be used for informational and educational purposes only. The CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. The CMT Association does not accept liability for any financial loss or damage our audience may incur.
GLOBAL MARKET BOND YIELDS SIGNALS BULLISH STRENGTHThe gloabal financial markets have a direct correlation with each other
The interest rates are no exception to this rule.
Notice that the TVC:US10Y forms an SMT(Smart Money Divergence) with the rest of the Bond yields
TVC:US10Y takes out the Sellside Liqudity while TVC:GB10Y and TVC:DE10Y did not take out their respective lows. This signal Huge accumulation of longs on German and Britain's Bond Yields
This should melt Treasury Bonds and Sink the Stock Markets
Are US10Y Bond Yields really gonna plummet?With USD recently becoming a less attractive asset to hold following the recent dump and bubble burst, US10Y bond yields are not demonstrating a very appealing picture as well. Technical aspects are as follow:
1- Daily TF Cup and Handle reversal pattern
2- Uptrend lower trendline Broken
3- It has made a first Lower High and Lower Low and still pushing lower with small frame corrections
King USD is in a bad shape guys with continuous loss of investor interest. Plan your trades accordingly, Best of Luck and Happy Trading :-)
us10y Compared to goldHello friends, I hope you are well
Well, I want to see this chart together
US 10-year Treasuries have reached a support since they started to fall
Gold followed an upward rally
And now gold has reached an important resistance, and in my opinion, the price of gold will drop very soon, and in the next week, I think the price of gold will decrease.
And on the other hand, the US 10-year bond has started an upward rally
And from a technical point of view, we see that it has an upward path
This is just my personal opinion
Good luck
How will markets react to rising yield and dollar?Moving averages can be applied to many things, from stocks and currencies to fitness measures and crop harvests. Here, the candles show US10Y is finding support off the 200ma, after making a significant decline. The 20ma (blue) and 50ma (dark blue) will indicate the yield's next trend as they separate.
The green line graph shows a serious decline in the U.S. dollar. As the orange short-term trendline shows, it may be ready to move a little higher.
The yield and dollar may not rise back to the highs, but they definitely can move up for a bounce in the near term. If the recent relationship continues, then this would create selling pressure for global and tech stocks while giving another lift to defensive sectors.
Here's a little-known fact to watch out for:
Starting in January, a new formula is being used to calculate CPI (consumer price index) data. The first release of this will be in February and the numbers are expected to increase relative to Dec. data. The new calculation will update spending weights annually (using one year's data) instead of biennally. Thus be alert to the possibility that markets react negatively to a high Jan. CPI, as the majority now think prices are coming down. On the flip side if CPI is in-line or lower even with the new formula, then markets will get quite a lift.
www.federalregister.gov