Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

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

By

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!

PrintPRINT
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.

MESSAGE OF THE MARKETS:

BONDS

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.

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.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE