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

To: GROUND ZERO™ who wrote (39088)	10/17/2012 3:58:55 PM
From: Keith Feral	Read Replies (1) \| Respond to of 218713

Bond market is finally suggesting some economic improvement, given the spike in yields to 1.81% today. Now, we just have to get through resistance at 1.87% from the past few rallies in TXN and the close from last year. Contrary to belief, the economy is humming along a little better than last year. Not by much, but a a little bit each quarter. Lot's of small gains eventually turn in some big movements in the economy. 31 months of sub par job creation better than 24 months of job destruction like we had from 2007 to 2009. That was ugly! Looking at the 5 year chart on TNX, it's impossible not to think the bond market is not going to break higher from the wedge this summer from the lows of 1.39% to where we are right now around 1.81%. I still think the bond market will print 2.25% or higher by the end of the year to put a yearly buy signal on TNX going back to the 2008 close of 2.25%. Is the economy in better or worse shape than it was 5 years ago, the data suggests that the economy is better. If the economy is better, the bond market is going to figure out a way to get back to that level.