It’s Monday and I sound really depressed – I’m not. Trading’s good and I shouldn’t care which way the market turns – just take my setups.
But in case you haven’t noticed, the Bond markets are going crazy.
The Bond and Equity market correlations broke down after 2008 – and so my old Bond Market Analysis and over-bought/over-sold levels no longer apply.
So what is the Bond market telling us?
I don’t think it’s good. There’s a huge flight to safety and consensus/realisation that we’re in a deflationary cycle. Duh – remember all that scare mongering about hyper-inflation? Yes, maybe some time in the future, but we’ll have to take our deflation first.
If you’re reading this article via email or RSS reader, then follow this link to view the Bond Market video on the website.
HIGH DEF VIDEO – MAY TAKE 15 SECONDS TO LOAD
Bond Market and Latest Charts (14:27)
Good luck with your Emini trading this week.
Oh, and by the way. If you’re interested, I’ve updated the Trading Backup article on the website and turned it into a 5-step plan.
