Bulls are claiming victory in certain of our key tells, but the game isn't quite over yet.
Any closing break above the blue line resistance or below the blue line support will tell us which in which direction the next big move will take place – so pay very close attention. A break above resistance could conceivably bring about a run to the upside with a target of around 1.10 (6500 pips from today's levels) while a break below support would lead at least to a move down to 1.00 (around 3500 pips from the breakdown point – should it occur). Options players might do well to simply bet on a large break in either direction occurring and eliminate the need to be correct in the direction.
Click to enlarge
The yield on the 10-year Treasury Note is still bullishly hovering above key support.
There's not much to add to what I have been writing about Treasury yields. They are clearly staying low due to the intervention from the Feds. However, they have not yet broken key support. Unless and until 1.548% is violated on the downside (on a closing basis), the wave count shown on the chart below is still likely valid and more upside in rates should be expected. That being noted, it's not a perfect trade entry at current levels for those betting on higher rates occurring.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Get The Minyanville Daily Recap Newsletter
Stay current on financial news, entertainment, education and smart market commentary.