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BofAML Warns "Treasury Bears Beware"
The reaction to the non-farm payrolls report in the US Treasury complex has the bond bears out en masse this morning. A 10-12bps jerk higher in yield is nothing to sneeze at and certainly flushed more than a few uncomfortable longs out - but BofAML's MacNeil Curry warns "treasury bears beware." The completing 5 wave advance and confluence of support between 2.738%/2.759% says further yield upside is limited. Don't be max short into these levels. There should be better levels to sell in the days ahead.
Source: BofAML
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Did anyone notice how the anti gold trolls came out today?
Inverse head and shoulders? Yup....like technicals matter anymore./s/
RIPS
But what BofAML did NOT say is that THE SPIKE TODAY IN 10 YR TREAS YILED COULD ALSO BE JUST WAVE ONE OF FIVE!
Better chart from Daneric's blog:
http://4.bp.blogspot.com/-TqWZ2FSdHIM/UnrHavrtTyI/AAAAAAAAXFM/YWIYfdXoFb...
Taper on!!
BOA is exploding by this spike
I'd take parenting advice from Casey Anthony before I took bond-investing advice from BAML !
Or from anyone talking Elliott waves, ffs. Non-falsifiable silliness: curve-fitting gone full retard.
Now I'm worried. I've been picking up TLT all day. When these fucks agree, it's scary.
Closed end munis have been trading way below NAV. If you want to get long duration, I would look at these instead. I have been buying muni cefs in my home state, which has a balanced budget, but sold off because of Detroit/Puerto Rico/Taper. Now I get a 6% tax free yield to buy them at the lowest levels since 08 crash. When it becomes clear that taper is an impossibility these will do quite well.
Sounds like a good plan. I am not holding anything for long. Just flipping around and trying to raise funds to purchase more metal.
>> in my home state,
What home state would that be and any funds in particular?
They'll probably do quite well anyway considering the new tax hikes this year. And the Detroit/Puerto Rico/Taper is a nice discount.
Treasuries are bare.
BAML encourages all clients to pick up nickles pennies in front of steamroller. Please.
Now that the Fed is printing enough money every month to buy the entire COMEX gold inventory ten times over, we should bet on rates going lower????!!!!!! LOFL BOAML you jackasses.
So if they say buy it must be time to sell...
Somewhere, somehow, someone.... actually assigns credibility to gov't released data.
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If the 10 year gets back to 3% or 3.5% Yellen will announce $170 Billion/month of QE.
The FED is in a liquidity trap. They are in a headlock from Wall Street and Washington because they are the heroin supplier.
Our society is in a morality trap, where increasing the allowance of malfeasance and skullduggery has diminishing returns.
These people are evil; not just dumb or delusional but EVIL.
Punishing responsible savers & rewarding cronies.
Bombs will drop before 3.5%
Eh... let 'em do $170 Billion/mth and see what happens. They will eventually and logically become the sole purchasers of whatever bonds are issued by the Treasury (somewhat similar to what Japan has now, but without the 95% ownership within the borders).
It would risk forcing the hands of countries who better manage their currencies to get out of the dollar, but that doesn't mean it won't happen. The dollar is doomed and easy pickings for anyone patient and determined enough to see the bet through.
Wave 5's don't look like that. What he's labeled as 5 looks more like a 3 would look, i.e. vertical with gaps.
I don't think 10's stop on this move until they take out 3%.
Last time they talked: 10/27/13: http://www.zerohedge.com/news/2013-10-27/bofaml-warns-us-10y-yields-have... . And you know what?. Until 10/30/13 yields was going down to 2.472 % from 2.50% (10/27/13). They always preparing the baseline to do the contrarian move. It is also true that from that 10/30/13 began to raise.
Hope this time occurs the same, in the beginning (this week), yields do the opposite BofAML is saying, and afterwards would eventually happen what is said in this article.