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US10Y

Uncontrollable Inflation?Will inflation get under control? This is a question that spins on my mind. This chart clears the picture. On the top of the equation we have "long-term inflation", calculated by GOLD*PPIACO On the bottom we have the true equity value, calculated by modified-yields*SPX modified-yields = US10Y+1+1/US10Y. It follows the standard US10Y chart. This chart tells us something alarming, that no matter the politics, we are inside a massive bull-flag. This chart below, measures the long-term inflation compared to total-money-earned-from-bonds. Another golden bull-flag appears, which found support on the 1980 peak. Commodities could over-perform any attempt we have at stopping the inflationary pressures. Any upwards move on yields, will have multiplicative increase in commodity cost. Take a look at SPY_Master's ideas regarding bull-flags. He is the inspiration of the GOLD*PPIACO chart. He basically used GOLD*DBC as a good measure of inflation. I replaced DBC with PPIACO for longer-term analysis. Now I will explain how and why these charts work. On the top we have GOLD*PPIACO. Gold is measured in dollars, while PPIACO not exactly... So on the numerator there is only one occurence of dollar value. M2SL moves exponentially compared to PPIACO. So PPIACO by itself doesn't get inflated by money printing. On the denominator, on the one chart we have (mod-yields)*SPX, which is again measured in dollars, but SPX is transformed for the "true" value of dollar. I thank SPY_Master once again for the inspiration. He invented the SPX/(1/US10Y) = SPX*US10Y chart. On the other chart we basically have the total money made from bonds. Total money printed is transformed for their cost. In reality this denominator measures the true value of all money printed. So it is once again normalized. Finally, look at this chart which compares equities with long-term inflation. Any upwards move on equities, will have multiplicative increase in commodity cost. Tread lightly, for this is hallowed ground. -Father Grigori PS. I am not a trader, these charts are not "tradeable". In fact, they could give someone second thoughts on investing. I don't have second thoughts on investing. These charts help us understand that sometimes, things are not as straightforward as we would hope. PS2. To anyone who hasn't played Half-Life 2, Father Grigori is the guardian of a city called Ravenholm. We don't go there anymore. PS3. My name implies that I am a priest of sorts, I unofficially could be one. Officially, I am not a priest. I am in love with how nature (and God) shows up in the most amazing of places. These golden flags are not random... Nothing is random. For example, look at this incredibly accurate chart. PS4. Please don't fill this comment section with arguments about faith and God, if you believe in one (or many) or if you don't believe in one (or many). These kinds of conversations tend to go up in flames. Please keep the peace.
TVC:GOLD
by akikostas
13
USDJPY LONG ANALYSIS TO $139📈The Dollar Yen has completed its fifth wave to the downside, marking the completion of its first major wave (Wave 1). This will now be followed by a 3 sub-wave correction back towards the upside, which counts as Wave 2. Targeting $139 - $140. Similar to all other markets correlating positively to the DXY, USDJPY is only facing a temporary upside, before the bears later take control📉 760 PIPS profit from current market price. Only suitable for big accounts, who can handle swing trading. Make sure to drop a follow and like. Let me know if you agree with this bias✅
Long
by BA_Investments
US10Y: Short the next spikeFamiliar pattern for the US10Y as with the support of the 4H MA200 it is repeating the mid December +13.50% rise. In perfect symmetry a new +13.50% rise tops on the Resistance provided by the first Lower High of the down leg, same as the November 13th Lower High. The 1D technicals have just come out of neutrality (RSI = 57.935, MACD = 0.009, ADX = 33.193) and an additional short trigger will be the next time the 4H RSI turns overbought above 75.00. Our short term target is right above the Support (TP = 3.340%). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:US10Y
by InvestingScope
5
SPX | What goes up......must come down. Conservation of Energy We all know QE... The god-given gift which made everyone rich! Well, not everyone... Consumers sure took a hit. But who cares about them? We want corporations rich! And they got rich . And boy some of them did go rich... That's the beauty of the American Dream! Sure we were cheating... ...but look at all this money we made! Violets are green, dollars are green, stocks are green, everything is green! And stocks are everything! (This chart shows the stock market "dominance". How much of the wealth one can have is inside the stock market.) And now everything is inside crypto. We are all-in. In a Poker Game where The House always wins. After all that fun party, it is time for the bill, not clinton bill, not treasury bill, not dollar bill. It is time for debt to get paid. As always, nature will do it's trick... Nature seeks equilibrium. Entropy. When we cheat and inflate, it comes and deflates. Nature is a closed circuit. When some deflate, others inflate. And the cycle goes on... Tread lightly, for this is hallowed ground. -Father Grigori
SP:SPX
by akikostas
3
The Good, the Bad and the Ugly YieldsI have this question... Why are high yields bad? What is bad? We are in a period of big changes. There are lot's of balances changing, one of them is money. We have just passed (?) the biggest monetary experiment ever (QE) and we are about to enter the successor to that experiment, digital money. Digital money conveniently came about just at the time when hyperinflation became an expected reality. If you talked about hyperinflation 4 years ago, you were crazy, now it is expected (and perhaps actually coming). ... Instinct tells us that the unknown is a threat, rather than an opportunity. Instinct slyly and covertly compels us away from change and progress. ... -Dr. Breen In the center of the stages is the paradigm shift in yields. After decades of consistently lower yields, now we are expecting consistently higher ones. Many (including me) have prejudged themselves into be lie ving that high yields are inherently bad. I cannot conclude into what high yields are bad at. The title suggests that they have 3 faces, good bad and ugly. I can conclude that now, like always throughout history, we are rolling in a cycle. Some things have changed in unpredictable ways. This unorthodox chart shows us that this year, we have lived through something unique. Perhaps this will be the way things move forward. From the charts above I have tried hard to conclude into something. The only thing I have learned is the following: Bonds are the new equities. In QE world, lower yields made more money. How? Money printing and borrowing needs low yields for it to be popular. Immense liquidity bubbled everything and productivity skyrocketed. QE is the fuel of globalism. Equities paid out dividends, so higher equities led to even more money. In QT world, higher yields make more money. How? Money burning and lending needs high yields for it to be profitable. Money makes more money, and every day it makes even more money. Commodity producers (GOLD*PPIACO as an example) and wealthy individuals/corporations/nations can enjoy this new era. QT is the fuel of war. Everything is precious and everyone fights for it. In a globalized world, you could make money by being an intermediate entity. Now to make money you must actually own the resources and money. Rich get richer, and poor get poorer. This is the purchasing power of the consumer dollar. Poor get poorer... Poor get poorer when rich get richer. These charts above are simple to understand and analyze. Down below I will add some of my favorite charts. These charts calculate the value of commodities compared to equities or money supply. Commodity production bull-flags against equities. Commodity production bull-flags against money supply itself. The bull flag is against yields as well. True Production Cost (PPIACO*yields) is bull-flagging (?) PPIACO is used as a historical alternative to USOIL. For some reason, we cannot perform old historical calculations using oil. They show that the commodities prove a big motive for everyone. Especially to those who seek war. Would anyone in their clear mind expect WWIII to be talked about in the 2020s? With the knowledge we have collected throughout all these years, this would be out of the question! Yet, here we are, casually talking about it. Again, changes are happening but we are stuck in a cycle. All we can do about it is to understand where we are, and not constantly deceive ourselves and others into thinking otherwise. So there is a clear benefit into just realizing where we are, it is not financial profit, it is speaking truth. Conclusion? This is a zero-sum game for consumers. Also, with bonds we are committing hubris. Bonds is a mechanism that helps money itself make more money. Have you heard about the Ancient Greeks? They talked about the fact that when money makes money, it is Hubris (something like sin, only worse). Equities gave more output than there was input, if someone includes long-term dividends. You working and making money is not Hubris (according to Ancient Greeks). Making a system which enables money to make money, then you commit Hubris. Consistently higher yields will help money make even more money. Equities are facing Nemesis (compared to bonds). Bonds have just now committed Hubris. There may be many years until they face Nemesis as well. Tread lightly, for this is hallowed ground. -Father Grigori PS. This movie "good bad ugly" was released in 1966, a period financially similar to the one we live now.
TVC:US10Y
by akikostas
2
US10Y: Trapped inside the 4H MA50-MA200The US10Y, a major driver for Gold, is trapped inside the 4H MA50 and 4H MA200, before tomorrow's Fed Rate Decision. This shows the market uncertainty surrounding this event as investors haven't yet chosen to pick sides. That keeps 4H neutral technically (RSI = 52.167, MACD = 0.014, ADX = 27.887) and we can only trade this with careful points that will be triggered after a level is breached. A breach over the 4H MA200 is a buy (TP = 3.780 / the Resistance). A breach under the 4H MA50 is a sell (TP = 3.420 / the Support). Carefully sell on tight SL further breaches below the Support (TP = 1D MA200 and Main LL in extension). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:US10Y
by InvestingScope
4
US10Y Approaching the 1D MA50.The U.S. Government Bonds 10YR Yield (US10Y) is on a 3 day rebound following a hit on the 1D MA200 (orange trend-line). The 1D MA50 (blue trend-line) is the natural Resistance, but if crossed, we can expect a long-term peak at the top (Lower Highs trend-line) of the Channel Down pattern that started on the October 21 High. A closing below the 1D MA200 first, would largely be a long-term sell signal that could break below the bottom (Lower Lows trend-line) of the Channel and target the 2.510% Support (August 02 Low) and make contact with the 1W MA100 (red trend-line), which has been our long-term bearish target since October. The 1D RSI can also offer sell entries on its own Lower Highs trend-line. ------------------------------------------------------------------------------- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! ** ------------------------------------------------------------------------------- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇
TVC:US10YShort
by TradingShot
5
The QE(xperience)Quantitative Easing, a fancy way of describing a bubble, the easy way out. QE Alpha During QE Alpha, speculation lead to a massive bubble, and a painful burst. Technicals: A Fibonacci Retracement shows that price followed closely it's levels. QE Beta During QE Beta, after stabilizing from the Great Depression, and after the end of WW2, economy rose steadily. US being one of the winners of WW2 and with the Marshall Plan deal, had a big advantage compared to the rest of the world. Technicals: The 1.618 retracement proves a significant resistance from above, which behaved as the ceiling for the Great Stagflation period of 1960s. Price reached an indecision where price couldn't penetrate the 1.618 retracement, but didn't want to fall below the 1929 high. A golden bull-flag was created, which escaped to the upside in 1982. QE 1.0 After severe stagflation, a new era of progressively lower yields led to the creation of the mechanism for QE1. It's fuel ended in 2000, and for a decade, the economy had big trouble going forward. It wasn't until the GFC when the foundation was set for the birth of QE2. Technicals: We have reached the 3rd harmonic and this proves big resistance for price. During this time, a harmonic bull-flag shaped. QE 2.0 The QExperience, which until now was unknown and unnamed, had now a name. And we have lived with it until 2021. Derivatives came about and inflated what is left to inflate. Since day 1 of 2022 we are outside it's trend. Technicals: Retracements drawn using the Great Depression peaks/bottoms constitute significant support/resistance levels. Conclusion: This SPX modificator makes historical analysis of SPX more mathematically accurate and clearer to see/analyze. A new era of increasing yields leads to multiplicative problems in the QE machine. Welcome to the QT era. We are already in it, for the past year, we hope you enjoy your stay! Look at the GFC intervention. The modified SPX chart depends on yields. More about it on this chaotic, full-of-mistakes idea. Tread lightly, for this is hallowed ground. -Father Grigori
SP:SPX
by akikostas
13
Artificial LifeWe live artificially, in a virtual world. We began this experiment when from actual currency we went to fiat. Money printing is not that simple. A debt based economy is fueled not only by money printing but also by money creation. Let's consider this thought experiment: We have three protagonists, Central Bank (CB), Private Bank (PB), and Human (HS) CB decides that she wants to run the economy, and prints $100. She creates the debt as well, so all is good. CB lends that money to PB and demands some profit (Y) which could be the current US10Y. The Private Bank then, to profit off of the loan, lends some money to a human. Let's pretend that the loan the human gets is ($100+Y). On top of that there will be another tariff that will go towards the PB, let's say again Y. From that simplified transaction, the PB makes more profit than the loan, because she lended some funds from their reserves. So the PB will earn from the human 100+Y*(100+Y) and will pay back to the CB 100+Y. Now remember, the only money in existence is the $100 that the CB made. So technically, nobody can fully pay out their obligation. Everyone is in debt and technically everyone is bankrupt from Day 1. To cover the increasing needs of humans for loans, the PB needs more money, and so lends from the CB. The second time around, the PB borrows $100+y So what the CB does is print some more money, every day we pay out our old obligations and we create more. That story you might already know. I added it because I wanted to make some calculations on it. For us to make sense of it all, we try to find out how many obligations were created from thin air. Scenario 1 If everyone is paid off, including the CB, the extra obligations are y^2+2*y. Now let's consider the percentage we gained from all of this. From a single "y" obligation, we created y^2+2*y obligations. Therefore the rate of change is (final value - initial value)/(initial value). Rate of Change = ROC = y+1 And if we plot SPX/ROC = SPX/(US10Y+1) Scenario 2 Everyone is paid off, except the Central Bank. While this might not be 100% feasible, I believe that it ends up describing much clearer today's life. Now the extra obligations (extra money) in circulation are y^2+2*y+1 And the rate of change from the single "y" obligation is: ROC = y+1+1/y And this is the plot we are witnessing now. (SPX/ROC) Conclusion @SPY_Master invented this chart SPX/(1/US10Y), linked below. Which is basically a ROC of 1/y. So the new ROC comes to fulfill the one before it, and give it a more "mathematically accurate" representation. Where does this leave us? This chart stopped on the 4th retracement. RSI is looking something more beyond precarious. It is fearful. This is another chart on how price moved the last 20 years. I will comment later on some more charts. For now, I will let the indicators speak of themselves. Tread lightly, for this is hallowed ground. -Father Grigori
SP:SPX
by akikostas
8
Weapons of Mass Destruction"Derivatives are weapons of mass destruction" - Warren Buffett This chart calculates the gaps we have left behind. All because of massive interday futures trading. A while ago, we didn't have that many derivatives. Interday trading had very little effect. In an overleveraged economy, just how much of current prices are based on actual growth? Indices are hitting new highs, getting inflated from more and more derivative trading and leverage. Just how much of what we see is a bubble? Judging by this chart, we should go back to pre-2015 levels... Trade lightly , for this is hallowed ground. - Wall Street Grigori
DJ:DJI
by akikostas
7
Markets want their equities back.The market is longing equities, they miss them so much... Perhaps there are traders out there who actually long equities right now. And maybe they have their reasons... Yields are showing the first signs of exhaustion. Their chart by itself confirms it. In the main chart above, we see support from the 200EMA (from 2M chart like before) RSI went oversold (penetrated it's ATR channel to the downside) and is now back inside it. This is bullish. This year stochastics were absolutely glued together, it doesn't get any tighter. Now they are ready for an upwards swing. But wait. Not all is good. The "true" SPX chart (SPX*US10Y) is showing it's first signs of weakness. So we have reached the point of "diminishing returns". Any increase in equities is not providing wealth. Like before, RSI, Stochastics and KC don't help. SPX is showing signs of strength for the following months. While I expect a degree of weakness in equities, not all hope is lost. In the meantime, I expect horizontal movement for equities, and some probable growth. Beware, for the cake is still a lie. A couple of extra charts: The chart I added above, the point we missed the trendline was in December 2018. In December of 2018 was the time when Put/Call ratio and VIX took separate ways. And what did equities do after this point in time? PS. With all that conspiracy, I wander why I don't wear a tinfoil hat... yet. Tread lightly, for this is hallowed ground. - Father Grigori
SP:SPX
by akikostas
1
Are US10Y Bond Yields really gonna plummet?With USD recently becoming a less attractive asset to hold following the recent dump and bubble burst, US10Y bond yields are not demonstrating a very appealing picture as well. Technical aspects are as follow: 1- Daily TF Cup and Handle reversal pattern 2- Uptrend lower trendline Broken 3- It has made a first Lower High and Lower Low and still pushing lower with small frame corrections King USD is in a bad shape guys with continuous loss of investor interest. Plan your trades accordingly, Best of Luck and Happy Trading :-)
TVC:US10YShort
by Uzi-Trades-Forex