if there is one of the strongest mid day-reversals we have seen in a LONG long time. (up/flat.....to.......down)
lots seem to be hoping for miracle news from FOMC, they "better" deliver, b/c its seems priced in by the bulls to me.
Focm has a strong history of being a rally into....sell off after for the longest. If the first "impulse" is bearish AFTER, its going to last a while.
We remain in a bear market, till (imo) the rsi resistance line that has been there this ENTIRE bear....is broken.
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I am confusing where is the blue (moving average)
ReplyDeleteThanks
blue = rsi resistance
ReplyDeletepurple = rsi support
Thanks! We are at the top of the RSI blue line right now.
ReplyDeleteFOMC will just reveal that they will continue buying "Triple AAA Rated" ABS to support the bond mkts.
ReplyDeleteThe Fed's goal is to narrow the yield spreads in ABS trading - nothing more.
Speculation on whether they will buy Treasuries is just speculation and I will not take a position in bonds until afterwards.
DXO Daily - ema13/34 about to cross! chart looks like a beauty, your thoughts?
ReplyDeleteOK I was wrong about the Fed not buying bonds but right about continued abs purchases.
ReplyDeleteBut I did not have a bond position and cautioned people not to take one - long or short in the face of an unpredictable event like the FOMC.
I am going to wait for a pattern to consolidate on the long bond before trading it again.