All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis. - Jesse Livermore.
End of the year interpretations are always difficult as shrinking volume can exaggerate moves. The long bond market, nevertheless, requires attention as price approaches the neckline of the large head and shoulders pattern. The weekly chart reveals the size of the pattern. The greater the size, the greater energy released in terms of downside price action if the neckline swing low fails.
The daily chart reveals the details of the recent deterioration in price. Again, volume is the key. It needs to pick up to create enough energy to break the neckline swing lows.
TA and money flows* suggest that stakes are very high.
Long Bonds TLT ETF Weekly:
Long Bonds TLT ETF Daily:
* Further discussion of long bond money flows:
http://business-money-and-finance.blogspot.com/2009/12/cot-money-flows-custers-last-stand-in.html
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