What The 10-Year Yield is Telling Us

My latest piece for TraderPlanet takes a look at the latest price action in the 10-year Treasury yield. Below is an excerpt:

This morning we are seeing a gap down in the 10-year yield, breaking below 1.9% and approaching the late-February low of 1.84%. Since Mid-March the Treasury yield has been sliding lower, all while equities threaten to hit new highs. With this morning’s gap we see yield breaking below a rising trend line which helped create a small symmetrical triangle.

Go read the rest here: What the 10-Year Yield is Telling Us (TraderPlanet)

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+.

The Concerning Bond Yield Divergence

There’s a common belief that the bond market leads price action in equities. If this is true then the recent divergence in the 10-year yield isn’t looking good for stocks.

Here’s a piece of my TraderPlanet article this week:

Last week bulls did their best to regain the prior set highs, and they almost accomplished their goal as we finished the week just under 1520. This is great; however, Treasury yields did not have the same type of recovery. As the chart shows bond yields continued to decline, putting in a lower low while stocks were attempting to rebound.

Click over to read the rest: Bond Yield Divergence Worries Equity Bulls (TraderPlanet)
Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+.

Small Traders Hate Bonds

In this week’s article for TraderPlanet I take a look at the bull/bear case for 10-year Treasury bonds. Momentum doesn’t look too good but based on COT data there might be some bright spots.

Here’s a blurb:

There’s little doubt in my mind that going into 2013 one of the most hated asset classes was bonds. With the report from Lipper of massive inflows into equity mutual fund, the largest amount since March 2000, nearly every major Wall Street strategist turning into a bond bear and the likely lack of interest rate activity it’s easy to understand why people have turned sour on bonds. However we have had low interest rates for over four years with the only option for rates to rise, bonds still have performed handsomely. It’s been over 30 years that this current bond bull market has maintained its legs, and various indicators are giving mixed signals for whether or not its run can continue to run.

Go read the rest: Everyone Hates Bonds… Should You? (TraderPlanet)

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer.