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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (11083)	10/7/2010 1:56:12 PM
From: Chip McVickar	1 Recommendation Respond to of 219619

I understand what you mean by this correlation of UUP and Stocks... there should be at some point a flood of new monies into stocks and interest bearing companies. However nothing in my work shows this breakdown or any beginning of a treasury reversal is occurring or setting up to do so in the next couple of weeks. I'm neither short nor long treasuries at this point... but I was long until late summer... misssing this last push higher Nor do I believe... (like Gold Bulls)... that the Bernanke Fed is incapable of resolving the blatant bond imbalances... (caused by the Bush team )... But I do believe bonds will correct very quickly at some point but NOT produce a crash as the needed imbalances gets corrected. Remember the Geithner/Bernanke Fed had No Choice in much of what they've done, based on what they faced... If they are a screwed-up team... that will be decided as they handle the correction out of these low interest rates... that will be their line-in-the-sand of competence measurement. Using the daily 10 year $UST price >> Out of the April low @ 114.89 the market has stayed above the 50 sma which now stands at 125.34 >> A pitchfork off the Jan and April lows with an extension off the upper tine has worked very well carrying this market >> Rising close fork has a median line above price and a lower tine at 126-127 >> There is a TP for 11 Oct... but it blew by one on the Sept 24 >> Bond Time Line sits between 125 / 127... about midway between the last correction of Aug and Sept >> RSI and CCI show a divergence >> But these do not yet show a Negative Reversal >> Nor has any of my momentum indicators flashed a sell Actual in closing... I can see even higher prices for the 10 year in te next few weeks. My Best, Chip