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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (38016)	8/14/2002 2:35:20 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 71004

[madtrader] Wed Aug 14, 8:55am PDT $TYX.X $TNX.X I believe we are looking at a blow off top for the bond market here. Both the 10 and 30 year bond yields are freefalling towards their post 9/11 lows. In the process they are breaking below their well defined downward sloping regression channels. This kind of deviation doesn't last long, and comes as the last leg of a major move. I am not sure just what the implication is for stocks at this point. The dollar has been weakened again in the past week. Not surprising considering how the bond yields have caved, foreign investors will want to seek higher yields elsewhere. If you are a bull on stocks, you can only hope that once the bonds have hit their price extreme, a sharp correction will take place in bond markets. Driving fund flow back into stocks. In some ways, it reminds me how growth and value names diverged back in spring of 2000. As growth stocks did their blow-off top in Feb and Mar of 2000, value names like MO simply stopped going down. Despite massive inflows into growth funds and outflows from value funds. Then all of a sudden the crash came in NASDAQ while DOW raced up more than 1000 points. I can only hypothesize such a reversal between bonds and stocks going forward.