Charts speak for themselves, enjoy.
📌 Endgame in the economic cycle and illustrating a painful recession Yields had the opportunity to move and successfully played the 'elastic band' rejection from the inversion in 2019, which despite the length of the global CB combination, can be expressed in no other terms than reckless. FED was obviously aiming for the ideal position (the frontal defence from...
Despite the rise on DX, Gold is extending it’s uptrend move / Buying pressure is evident, but still Gold is showcasing the strong underlying Bearish trend. What keeps Gold ranged is the Bond notes Trading near Resistance, and above almost an Yearly high on the Stock markets. Also, on the E.U. opening, I spotted also side Swing movements as I am only expecting Gold...
It's obvious that the Fed has to continue Treasury purchases to keep rates suppressed; the Federal debt is so huge at this point (and the fact that financial fallout from covid isn't even close to resolved) indicates to me that yield curve pinning is likely part of our future. If the Fed pins yields, they're likely to start out towards the front end of the curve....
It is well known that Gold is tightly correlated with Bond notes, which are showing apparent recovery candles. I am on a strong Sell side regarding Gold's Medium-term and a slightest recovery on Bond notes could engage the historic decline on Gold. DX did approach the #92.80 Support but Gold remained more or less stationary Hourly 4 chart making a mere Lower High...
📍 This chart update comes from the ' Alpha Protocol - Seeking Immediate Extraction ' The cramped inversion should aways be considered the end game of an economic cycle. But of course we will get the v shapers and naysayers who obliges that stonks only go up. The space available to operate against the Robinhood army is becoming more flexible. Sharp speculators are...
If so will it bring equities down and DXY up? Will the correlation hold or diminish?
Taking all aspects into consideration, personally - Gold is ready for more than #200$ historic decline on Medium-term. New monetary stimulus is prepared by U.S. officials, “economy recovery” process is expected as U.S. Treasury yields and Bond notes (#5Y), dipped without finding the Support regarding market sentiment and Technically - Bearish Price-action should...
Downside remains, 17:17:45 (UTC) Fri May 22, 2020
Shorts covered at breakeven from entry taken yesterday. 21:54:07 (UTC) Wed May 20, 2020
US05 Yr Yield Short Entry 22:38:04 (UTC) Tue May 19, 2020
A timely update to the 2s5s US Curve which is breaking higher with the resteepening after flattening from 2016. This breakout indicated we have marked a meaningful base with the next target in play at 29bps which is the measured target from a breakout. (1) Every other time this happened it ended badly for the global economy via recession. (2) A Fed that lags...
You have opened the grave of an economic cycle. Before we dig deeper into the nature and consequences of our discovery, we will discuss the background to the thesis and consider first what we know from history a few lessons; (1) Every other time this happened it ended badly for the global economy via recession. A (2) A Fed that lags and finances the Whitehouse...