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BofA Warns "Everyone Should Pay Attention To Treasury Vol"
US 5Y Treasury yields are approaching a key level, but as BofAML's Macneil Curry warns, the MOVE Index (the Treasury market equivalent of equity's VIX) is more important to focus on...
As BofAML's Macneil Curry explains,
Key levels approach in US 5yr Treasuries, but the Move Index might be more important.
US 5yr Treasury yields are approaching key long term support.
Specifically, 1.809%. A close through here would complete the year-long contracting range and mean resumption of the long-term bear trend, exposing 2.025%/2.055% and eventually 2.18%/2.25%. A breakout in 5s could also prove to be the catalyst for a turn higher in Treasury vol.
A break above 65.12 in the MOVE Index would confirm the turn in trend, targeting 73/75 and potentially beyond. With 5s on the verge of a breakout, and we must be clear, we need to see a close above 1.809% to confirm a breakout. Furthermore, while USDJPy pushes on higher, a turn higher in US Fixed Income Vol could lead to a pretty nasty snapback in the carry trade.
Finally, 10s continue to trend bearishly and are targeting key support at 2.591%/2.601%.
A close through here exposes further upside for the Jul-03 high at 2.694%. Through this latter level confirms a resumption of the long term uptrend for a push towards the 2014 highs at 3.049%.
Finally, while the cash index has broken below 1990.52 support, ESU4 has not yet broken its equivalent zone at 1985.75.
A close below here is needed to expose the 50d avg (1968.25 in ESU4 & 1971.71 in cash).
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Dump everything paper...
Buy everything paper and margin for gold. Much more effective.
Hey, look at that,,
A vol index that does not only go down!
Margin is the New Butter.
I'm seeing more and more margin calls made on a certain large asset management firm.
LOL. Well, it's certainly the greasy stuff that makes the wheels of speculation go round. strikes me funny bone, for some reason.
Wait, we're supposed to pay attention now?
roflmao...
NotApplicable to you.
No BofA,
We should pay no attention to any of you crooks, and just how much manipulated physical gold and silver we can get before it all goes down the shitter, you included.
Right. This guy said "short gold!" back in May.
http://video.cnbc.com/gallery/?video=3000275083
http://www.infomine.com/investment/metal-prices/gold/6-month/
According to the chart, gold is off about $100 since then.
He must know something..,eh?
Just guessing, but I'm thinking what he knows is how to read a price and open interest chart. Which, bye the bye, looks quite positive at present, in contra-distinction to what it looked like in May. eg. the shorts have the money made; but times up; and it should be easier to rally than scale down now.
A close through here would complete the year-long contracting range and mean resumption of the long-term bear trend...
long-term bear? wtf?
http://research.stlouisfed.org/fred2/series/DGS5/
hit "Max" on the above chart. We have been in a bull 5y t-note environment since friggin' 1981.
As long as you have your 50 lbs of gold in the basement you'll be fine. When the end comes, you can crack your head open with the bullion.
Bank of America is the single best contra indicator in the world. Regardless, who needs one anyway when all you need to do is BTFD?
I thought it was Goldman? Seriously, we're talking incompetence versus Muppet raping.
I btfd and all I got was a lousy T-shirt.
T he "dip" was B of A stock at $5.00 a few years ago; which I bought at two to one margin and made a little over 60% net on in 6 weeks. People seemed to have trouble understanding what "too big to fail" meant; the emotional mind can't read, apparently.
So buy treasuries, got it.
Is zerohedge BofA's b*tch? I mean they keep pumping this turd's treasury bear message endlessly, regardless of bad economic data, strong auctions and a stock market that is at one of the 3 highest valuations in the last 114 years (1929, 2000 and now).
It's all about the huge real estate boom...and the collapse in the US dollar.
"Stay away from debt...demand is soaring and so are prices!"
If you pay attention, you will notice the huge doses of ridicule TD heaps on most every mention of them.
They are showing how ridiculous this message is, not promoting it.
Yes, very good, you noted the other two times in history we were at massive peaks.
Now consider three things: 1)underlying fundamental economic indicators are WORSE now than during either of those two previous peaks, 2) Debt and liquidity are at all-time highs and climbing, and 3) WTF happened in the early 1930s, in the early 2000s??
This next wave of bankruptcies/defaults/collapses is intended to be so massive as to bring the world to its knees, and cull the herd at the same time, i.e. holocaust and war.
Oh yes, italian 5 year bonds pay 1.13% and the yield on our 5yr bond will go to 2.2%. Makes sense in the world of TBTF corrupt banks that short treasuries of their own country - the country that will bail them out when they implode.
What a sh*t show.
How long has it been now since anybody gave two shits about any Technical indicator? All these pretty colors are utterly useless in a Fed orchestrated market.
Bank of A? Technicals? Both not relevant in a rigged market! Redundant comment, I know!