In this months Long Short Report I discussed the potential for a US bond rally. Rising bond prices
are often associated with a risk off trade because people buy bonds as they sell US stocks, in an asset allocation trade. Yesterday the 30 year bond prices rose again to a new 2 week high. This caused the bond spreads between the short and long end to narrow [also called the flattening of the yield curve], Over the last two months different markets peak at different times. So Europe peaked in Oct and Asia in Nov and the US just made new highs in Dec....and Bitcoin is still making new highs.I
write these notes below everyday, but here are some of the posts from today morning.
BitCoin
Bitcoin - In the last post I showed that we are in
wave 5, and now wave 5 is extending into i-ii-iii-iv-v, and it fits a channel as shown. down then up once more.
Hang Seng
Hang Seng fell in 5 waves from the upper end of the channel, so apart from a near term bounce back the trend should be down here. The decline is from the upper end of the channel from the
2016 bottom.
S&P
The S&P 500 appears to have completed a 5 wave rise from the August low. We are still to see if the fall is the start of a larger correction, Anticipating initial waves i and ii for now.
DAX
DAX - broke to a new low and paused. It can be considered as wave b of ii. Till the low holds wave c of iii can go up to the 61.8% mark near 13250.
US 30 year T Bonds
US 30 year T bonds moving toward lower yields as they rally again. As discussed in the long short report the trend has changed as wave B is still in formation in a more complex pattern. Wave C of B up maybe in progress that may result in a 5 wave rally.
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Rohit Srivastava www.indiacharts.com For accurate market forecasting. Market forecasting is a study of past data to assess future probable outcomes. It is our endeavor to discuss high probability outcomes for traders and investors. However this is not a solicitation to buy or sell stocks futures or options or any
security. Trading in any financial market should be done with sound knowledge and the help of a qualified investment adviser. Stocks based on the Elliott wave model are based on the Fibonacci fractal of the market and momentum indicators, targets are based on Fibonacci maths and are only indicative of what the mathematical model throws up. This is not a recommendation to
buy/sell. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
