Dear Readers, 5.25 is here for 10Year Notes, almost 5.248 was just hit! Next, if we do 5.36 and next 5.56. Could be amazing for those who try to refinance...
Yes, Just touched 5.25. Considering we do not have strong rejection, is it that easy, are we going higher still?
Good Trading
Jim Taylor, JD said...
Spike UP at 11:15 PDT Capped by 1511.26 aand 2575.56.
Relative weakness in S&P500 suggests further downside to 1491.18 by 12:45 PDT.
JIM
6/12/2007 12:25 PM
4 comments:
Spike UP at 11:15 PDT Capped by 1511.26 aand 2575.56.
Relative weakness in S&P500 suggests further downside to 1491.18 by 12:45 PDT.
JIM
Make it plain, please, are you a bond bear, or do you see this as a big fake out with lower rates to come?
Dear Edwardo, we are never bear or bull. We just want to make money(: :). It is clear that we stated for those that need income, they can not afford to be bear or bul either. They must get income. So, we advice to average into it at these initial resistance levels.
Now, if you really want to know, in the long term I am a bond bear. No question about it. That does not mean that interest rates will go up very fast beyond this point. That would kill the housing completely. So, Yes, bear, but with the moderate speed. We stated publically that Interest Rates are bound between 5.25 and 4.10 and we are still with that. We even think 4.10 maybe too optimistic anymore. Besides these numbers get updated Yearly, so stay tuned.
Good Question Dear Edwardo. Good Trading
Dear Readers, Edwardo, I would like to clarify couple things. You know that being positive or negative about securities does not mean much unless time frames are indicated. Therefore my clarification is as follows. Interest rates could get hit hard between now and August. Max levels I expect 5.65 on TNX(10Y Note). Intermediate resistance levels could turn things around at 5.25 and 5.36. After that I expect slowdown IN the USA/world and some trading range between 4.5 and 5.25 on TNX for about 1-1.5 year. After that I expect the range to widen on the upside to 5.25 - 7 into late 2008-2010. End even higher into 2015.
Good Trading
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