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Wednesday 20 April 2016

Bonds Trend in US Government Bonds 30 Year Treasury

Looking at the bonds trend in US government bonds 30 year treasury we see an ending diagonal chart pattern. Don't screw around with the ending diagonal. The bond market is a way bigger market than the equity market and money flows to were it gets it's best deal. Martin Armstrong has been touting the fact that money is going to leave the government bond market and go into the stock market, he may have an extremely valid point. Money from Europe is making it's way over to the United States equity market and propping it up, not to mention corporations have been buying their own stock back too. Money isn't going to sit in an account were you have to pay someone to hold it, it's going to leave and go somewhere that gives the investor it's best bang for the buck. Don't screw with the ending diagonal.
Note also the COT (commitment of traders) data below the price. Odds are the bonds trend is down for price of the US government 30 year treasury as well as every other country... bond prices down, interest rates up.
Investors might say, "if interest rates go up...that will hurt the economy"... that's what the main stream media would like you to think. The bond market sets the price and the Fed follows, just look at some charts at http://www.elliottwave.com/ you'll see for yourself. If this happens, you'll see it in the equity market first, equities go up... fast... and then tank... just like 1927 to 1929 (up) 1929 to 1932 (down).
My next article will have some really interesting charts on that period of time. Martin Armstrong has a point here and you don't want to bet against his model, that's a whole other story,

30 year US bond price, elliott wave count1993-April 19, 2016


Ending diagonal chart pattern - ending wedge chart pattern

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