Monday, December 12, 2016

Bond Plunge Done?

Almost.  Even freedivers have to come up for air. Please don't get me wrong, after 35 years this looks like a long term change of trend ( please see Oct.17 post Would You Buy This?)
BUT
Eventually the selling is done and there is nothing left to do but ...breathe.
 6 mo. chart
click to enlarge
Note the positive divergence on the RSI.
There looks like room on the Elliott Wave count for some further lows and so the Fib retrace points above are theoretical.
3 yr.chart
click to enlarge
Lots of spec shorts in there now as is often the case as the 3 wave matures.





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