Monday Mutterings
I hope to God that the chart below is a misprint and not a premonition.
If bonds make a move like that, this crisis is going to take a turn for the worst.
Though we closed positive Friday, my indicator fell, suggesting a bearish divergence in an uptrend. Buy on the dip is still in play, but sell on the rip may soon be in order.
The spread between US Equity and Bonds is battling with resistance. A resumption of the downtrend is likely, but has yet to be confirmed.
Yen versus USD continues to be a winning trade.
Priced in gold, the 30Y Treasury has pulled into support. Until this trend breaks lower, inflation plays will move lower or sideways.This market is giving lots of mixed messages. I’m expecting range bound trading if volume is low, and a volatile break down if shares start to move. This means I’m most unprepared for high volume accumulation and mark up, so I will be watching for such action like a hawk.
On another note, I’m starting a computer service company in Seattle, so if anyone has arcane suggestions, please feel free to leave a note.