Business-Insider

Strange Market Mechanics.

The Equity Markets are trying to find a base.

The Dollar is getting bought so that Trade Desks can buy US Treasuries.

The 10 Year Treasury Note is going higher, the 10 year Yield is hitting all-time lows.

Trade Desks are not paid to sit in Cash.

There could another Rate Cut coming on the 30th from the Fed.

That will flood more Treasury Notes into the Market.

Reducing the 10 year Yield.

So, Trade Desks will have to buy Equities to get a return over the 3.4% Treasury Yield. (No bonus comes by matching the 10 year Yield at the end of the year).

OR, go Long the Higher Yielding Currency Pairs to earn Swap/Overnight Interest.

Aussie, Kiwi, Pound, Euro, they all pay out Interest to hold them Long against the US$, how strange does that seem? So, sell the Yen as well then.

The trigger to all of this?

The US Equities closing in the positive. It is coming, make no doubt, the Markets are talking to us. The Blow-Out Bottom has arrived.


Yours Sincerely

Jack

TheLFB Team
__________________
Outside of the Free data below, we also provide an Educational Alert Service. As from Jan 1st it has produced 730 Pips Net.Member Testimonials
Free Daily Trade Plans; Euro Cable Aud Cad Yen $
Tired of News? Want Some Opinions? Our Forex Blog Will Sort You Out, Careful It Is Opinionated.
Free Forex Newsletter.

Blogged with Flock