US10Y

18 дек. 2018 г.

For long term investors, I want to point out two things. One, when charting a security on a monthly basis, most people keep the scale as is. Long term chart should always be Log Scale. With this in mind, you will notice the US10Y never cross above the downtrend line in place since 80's. Although I think rates in the long run has reverse higher, the line would have to be cleared out before. Also, everytime the RSI reached the 65/68 zone, rate decline between 30 and 75%. The point is, global de-synchronization is not over and bearish sentiment will increase in the weeks ahead. rates will continue lower for the time being. Stay long bond and bond proxy and add close 2.93/2.95%.