When we noted that TNX had reached important support a couple of days ago [see: Is DX Really Breaking Out?] we had no idea it would only take two days to return to important overhead resistance. Yet, here we are.
As usual central bankers are doing their best to manipulate the symptoms of a faltering economy — in the hopes that investors will mistake this for a cure of the actual ailment.
continued for members…
Will TNX punch through this time? Since Janet and I don’t talk that much anymore, it’s anyone’s guess. But, if TPTB want to stop this correction dead in its tracks, the opportunity has arrived. A push through the red, dashed TL would do the trick.
Remember, a retreat from the red TL from June 2007 means a correction. Pushing above it — which hasn’t happened since, well, ever — presumably means a rally.
Comments
3 responses to “Update on Bonds: Dec 3, 2015”
Hi Pb if tnx went to overhead resistance and we had a major down day how does it pushing past halt the correction. I never have understood bonds. thanks
when equities are melting down, fear drives investors into bonds — driving down rates. The presumption is that higher interest rates reflect an environment that’s more open to risk taking. But, as mentioned above, central bankers use this principle to help stem equity sell-offs. “If rates are rising, there must be no reason to be fearful!” It’s manipulating the symptom in order to change perceptions of the problem.
BTW, our membership promotion ends today. If you still want to sign up for a charter membership, this will be the last chance.
thanks did and done