The Collapse Of The 10 Year Bond and Inversion in Rates

                                                         The Inversion Of Rates (10 Year Treasury Bond)

Hold onto your hats, a Tsunami is brewing in the Bond Markets with ominous outcomes for all involved.

Whether you are a Retail Investor, Mutual Fund, Hedge Fund, Bond Trader, Equity Trader while you were

busy listening to the Bulls calling for higher highs the 10yr Bond was creeping up. The above chart is a weekly

chart created with patterns , not candlesticks. The Trading Signals are crisp clear from the top in 2007 to the
 bottom in March/2009 and the subsquent rise eventually creating a negative Divergence warning of an imminent
 fall and now the most recent rise which will spell the kiss of death to Equities, and the Global Debt Markets.

The Imminent Collapse Of The DJIA & S&P500

The Imminent Collapse Of The Dow Jones Industrial Average and S&P500

The above chart was created by using a method called renko which looks at

price data over time and displays it in a compacted manner, very easy to read

and taken action on regards trading whether you are a retail investor, bank,

mutual fund or hedge fund. Notice the MACD setting underneath the chart.

Because the charting method compacts the data, its now possible to set the MACD

to a much smaller setting such as 5,9,12. The MACD reveals a positive divergence at

the March/2009 bottom and most interesting is the fact it now shows a negative

divergence indicating we have not much to go in price or time on the S&P or DJIA.

Next Blog will have a look at the 10yr Treasury Bond which has generated much

excitement because just a perusal of the double bottom alone is enough to convince

me of the trend change.

$SPX - Weekly Candlesticks

$SPX - Weekly Candlesticks: "

via StockCharts.com

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