Thursday, February 22, 2007

Are Yields Ready To Move Higher?

Looking at the above chart of the 10 year treasury note yield, it appears to me that we may have seen a short term bottom.

The 10 year yield had a nice advance from December to January and has now retraced 50% of that move. Yields showed some strength today bouncing off the 50% level.

If you look at the seasonal for Bonds, you can see that bonds tend to sell off this time of year establishing a low in April or May. Since yields move inversely to bonds, that means seasonally yields could move higher over the next month or so.


Sandro said...

Kevin, fundamentals are telling me that there is a big market sell-off coming within two weeks.

What the charts are telling? I have little clue in charts. Do you see anything?

Kevin said...

Charts are telling me that all the money is being made on the long side. When I buy I make good money so I'll stick with the long side.

Sandro said...

Good, thanks. Will see.

What I'm watching today is:

Will see how long it will take to bring the market down on those.

russell_fuhrman said...

It sure seems to be that this is the healthiest market, at least technically, that we've ever experieced. I share your bullish enthusiasm Kevin-fundamentals are also very good.


This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
Technorati Profile Finance Blogs - Blog Top Sites