10-Year Treasuries – Bad Investment

July 12th, 2010

That’s right I said it – short the 10-year treasury bonds. They have been on a huge upswing of late and there will come a time when interest rates HAVE to rise to counter balance the debt structure of the US. It’s not going to happen overnight, but after nearly every single recession bond prices eventually fall hard.

When this happens, bond prices will fall dramatically so as to entice people to come back and buy more bonds. Here’s where we are right now. Also notice the huge spread between the 50-day and 200-day moving average.

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Traded Index Futures – Index Charting

July 1st, 2010

Looking at a chart of the major traded index futures from yesterday and you can clearly see we are heading lower this morning. It could just be the technical break of the 1,040 level on the SPX that is causing the commotion. Remember we warned about it’s consequences earlier this week?

Now are are flirting with a major support break and a possible “lower low” signaling the final trend higher has changed.

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