Plunge Protection Team to the rescue time?

The chart above looks at the yield on the 10-year note (TNX) “Inverted.” The 10-year yield has remained inside of rising channel (1) for the past 25-years and rising channel (2) for the past 10-years. Will the Plunge Protection Team come to the rescue at (3) and keep the channel from breaking?

Below looks at the same chart without inversion-

CLICK ON CHART TO ENLARGE

The yield on the 10-year note is testing the top of its 25-year falling channel as well as its 10-year falling channel at (1). The last “two times” the yield cam near or touched the top of this channel was in 1999 & 2007. 

If history is any kind of a guide, the test of resistance at (1) might end up being important for stocks as well as bonds! Last couple of time the top of this channel was hit, out of favor TLT did ok. We will see if its different this time!

Plunge Protection Team to the rescue??? The Power of the Pattern believes some very important inflection points are in play friends!!!

 

 

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Comments

Arnold Mon, 02/12/2018 - 12:13 Permalink

I have to agree , many trend drawn lines are showing a perfect storm.

Somebody is seeding the storm with Silver Iodide to try to weaken the effects.

Well, good luck to y'all.

"But after the S&P hit its 200DMA, everything bounced miraculously..."

Almost like the candles were manufactured by machine.

https://www.zerohedge.com/sites/default/files/inline-images/2018-02-09_

https://www.zerohedge.com/news/2018-02-09/goldilocks-dead-stocks-suffer

Buck Johnson Arnold Mon, 02/12/2018 - 14:20 Permalink

All the trend lines are showing a perfect storm and it isn't pretty.  We are going to have a major down tick in the market and possibly have a true bear market that will last for years if not a decade or two.  They have used everything they could to keep us from having that bear market back in 2007-2008 and in delaying that bear market we have allowed it to be worse in 2018 and possibly turn into a Hyperstagflation.

In reply to by Arnold

Greed is King Mon, 02/12/2018 - 14:27 Permalink

Plunge protection is a polite euphemism for market interference and market manipulation, both of which are illegal; but perfectly ok when the regulators and authorities are in collusion with the illegal practices it would seem.

KenilworthCookie Mon, 02/12/2018 - 14:40 Permalink

Then again maybe they won't.The Deep State if at all possible will try and make President Trump's life as miserable as he has made theirs.And what better way for the hidden hand to show how things run behind the scenes than to allow the markets to fall and more importantly allow the bond market to price its actual cost.