Bond Market and Latest Charts (14:27)
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.
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.
Good luck with your Emini trading this week.