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Bullish Trends Are Still Holding Up in Risk Assets for Now, but How About October?


It's time for risk assets to start building their strength into the end of the month/quarter, right? This week has been very ho-hum, but expect some better action in the next nine calendar days. After that, however, be careful!

MINYANVILLE ORIGINAL Get ready for the end of the marking period push – a rally in risk assets that may take stocks to new highs. However, that should be followed by a more substantial correction lower in risk assets in October. That would mean October will bring weak price action in stocks, gold, crude oil, and the risk currencies while Treasuries, the US dollar, the Japanese yen, and other "risk off" beneficiaries will show strong price action. Of course, all that is contingent on me being correct in my call – a goal always strived for but not always attained.



Before we get into some new bond charts, let's check in on our go-to charts of the yield on the 10-year Treasury Note ($TNX.X).

Monthly charts say Treasury yields still have a bit more work to do on upside before resuming trek lower.

As pointed out here on Monday, I'm still of the opinion that Treasury yields need to move higher before they make yet another push to the downside. The monthly chart below shows that they will work their way up to either 1.955% or 2.241% in all likelihood before the wave iv correction higher is over.

Click to enlarge
No positions in stocks mentioned.

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