YM backs down below monthly R1 (12764) once again. They are trading those yields, watch TNX 47.15 level. The inflation boogey man is still with us, although gold is backing off because rates are finally rising and propping up the dollar. Rates go up, inflation is less of a risk, so gold finds weakness. It's the perception that nothing is done to fight inflation that gives gold a bid. Again, watch TNX 47.15/47.20 resistance. Newbie traders never bother to look at bonds. They better start now because it will be with us every day as long as yields rise. You can be as bullish as you want, you are fighting billions of dollars looking for the best return going forward. A TNX reversal down below 47.10 (50 DMA) would give equity bulls a lift again. Otherwise, it could be choppy and maybe even nasty.
Watch ER 828 on any drop.
Watch ER 828 on any drop.
This entry was posted
on Thursday, February 22, 2007 at 2/22/2007 10:15:00 AM.
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