Relationship between Gold and Treasuries is at historical extreme. If the trend holds (we bounce), Gold is expected to do better then treasuries in the weeks ahead. Past few weeks support this idea as gold begins to outpace TLT Positive jobs data that signals a rate hike could trigger a dramatic increase in Golds price. The 10yr chart supports the timing. Gold...
Junk bonds are typically just that - junk. But, the iShares High Yield Corporate has been one of those crowded trades that just do not die. After witnessing the immaculate short squeeze from 1,864, the SPX staged an impressive rebound. But as I mentioned earlier today (on my InvestFeed - link below), the SPY is looking weak, and the ADX, which measures trend...
Should silver price in retail demand or economic sentiment? Silver prices have rallied hard since the beginning of October, up almost 10.5 percent since the October 2 low. However, traders are now budded up against key technical resistance. Will traders’ sentiment reject silver’s upward momentum, as it has done seven times since 2013, or will demand spark higher...
In " Gold Leaps Higher as Worries Mount ," I briefly pointed out how those very same institutions that championed quantitative easing policies implemented by the Federal Reserve are now coming out to proclaim quantitative easing added no substantial benefit to the real economy . Gold was pushed lower on the assumption that central banking policy would all pan...
As we can see on the graph, the Stoch RSI is gradually weakening as we reach the high point of 2015 for the corporate bond. Although a very slow trade, we can look forward to seeing a gradual profit with very low risk to return.
Some say this week's FOMC decision will be of historical proportions and be the first time the Federal Reserve will increase the Fed funds rate in almost a decade. The U.S. dollar index is in a descending trend. Price action is floating above the minor trend created by the top on April 13. The dollar has not been able to see any significant support higher,...
Running Alpha Capital Markets is now applying sophisticated Quantum Game Intelligence to Identify Regime Shifts in the U.S. Interest Rate and Treasury Bond Structure -- A major sell signal has just triggered for the 30 Year U.S Treasuries -- > An rally above the next critical price zone of ( $30.29 to $30.44 ) level is the next major buy signal trigger for the...
SPDR® Barclays Long Term Corporate Bond ETF (LWC) fell out from 1-st standard deviations of quarterly (66-day) and 1-year (264 day) means, thus entering a full-blown downtrend. This scenario is only cancelled if price gets back within 1-st standard deviation from 1-year mean (above 38.7) Traders can take short positions off 1st standard deviations from quarterly...
We are seeing TLT trade near the top of a custom range. We wrote an indicator to add 2x Weekly Average True Range and we have found that channeling securities like to live in this area. We are looking for TLT to move a little lower, especially with RSI peaking around 65. You can get more details on our market snapshot! Cheers, The Enhancing Capital Team
Following the FOMC minutes on Wednesday, gold has seen a massive two day move that brought the precious metal to five-week highs. Worries mount as market participants are beginning to realize that the Federal Reserve is stuck within a liquidity trap. The minutes statement indicated that the Fed saw risks to near-term inflation (as the five-year breakeven rate hit...
Sold short some TLT at the market close. Looking to add tomorrow right away if it gaps down. Aiming for 123.40 (1° target); 122.33 (2° target and out). RSI divs on 1hr usually work on this ETF. The only worrisome sign: SPY seems to be at a hard place and this is a 'risk-on' trade. Let's see how it goes. Best,
$ZB_F $TYX
Running Alpha Capital Markets observes that higher rates are not always a headwind, as the not too distant record shows that the electric utilities group can outperform and offer a margin of safety. During the last period of higher rates, from mid 2004 to mid-2006, the FOMC hiked rates 16 times, and despite these incremental actions, electric utilities actually...
With speculation over interest rates, TLT is hitting a ceiling for a second time. The .382 Fib line (in yellow) is prominent and the presence of the 200-day moving average (black moving average) make up a double resistance level. For a little more analysis and news check out our website! ttp://ht.ly/QISg0 Cheers, Enhancing Capital Team
TLT is breaking higher from both it's descending channel off January 2015's high and the Right Angle Ascending Broadening Formation (RAABF) it has been consolidating H12015's slide since early June. This dual trend line breakout occurs after a pivot from the Potential Reversal Zone at 115.50-116 of TLT's 10-month Bullish Bat. On this basis, TLT is poised to...
UPDATE: As far as I am concerned there is close to 0 hope left that there might be a last-minute deal on Monday to prevent the implementation of capital controlls and finally the Grexit >>> Markets will respond "Not with a Bang but a Whimper" twitter.com >>> 'It's time to hold physical cash,' says one of Britain's most senior fund managers www.telegraph.co.uk...
Two weeks ago, I presented a bullish case for the German Bund (www.cfdtrading.com). Prices have since bounced on a long-term trend line at 148.50 are are currently testing a resistance at the 152 level. If this resistance (daily Kijun) breaks, this could be a new bullish signal. Depending on how the euro and European equities trade, my targets will be at 153 and...
Fed has been holding rates near zero level since 2008 however in the US several macro indicators are on stable path of growth. Even looking at prices core inflation (inf. exc. food and energy) is at accaptable levels. On the short run a clear sigh of September rate hike can bring USD strenght