Short Term Trading forex trading links forex trading books market statistics trader values euro and us dollar Shocks Crashing Stocks Could Bottom Within 10 Months?

Friday, 7 October 2011

Stocks Could Bottom Within 10 Months?


Can t-notes be used  to predict stock trends? Maybe...

Stocks and notes (bonds) yields seem to have common denominator: they tend to move away from each other. A decline of the former could be followed (anticipated) by an increase of the latter. Extremes are important, as they might determine a change in direction.

What is the relationship now? The U.S. 10 year note futures (futures prices rise, as yields decline) have reached the 26 year's resistance line. In the past, this pattern has been an indicator of stock trends. In fact, for 3 times out of 5, stocks have shown the tendency to bottom within 10 months after bonds hit the upper line. The past does not guarantee future results. However, reality could reveal itself sooner than later.

Consumer confidence is in fact deteriorating, despite a resilient economy. Will Washington be able to act faster than Brussels?

Angelo Airaghi, www.ProfitsOn.com







10 Year Notes Futures
TOPS
86/08
93/10/
98/10
03/06
08/12
S&P 500 Futures
BOTTOMS
87/10
94/04
98/10
03/03
09/03
Months
10months
6 months
0
0
3 months










10 Year Notes Futures
BOTTOMS
87/10
94/12
00/01
07/06

S&P 500 Futures
TOPS
87/08
94/08
00/03
07/10

Months






The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed, neither the information presented nor any opinion expressed constitute a solicitation of the purchase or sale of any forex, futures or commodity product. Those individuals acting on this information are responsible for their own actions. Forex, futures and commodity trading may not be suitable for all recipients of this report. The risk of loss in trading forex, futures and options can be substantial. Each investor must consider whether this is a suitable investment. All recommendations are subject to change at any time. Past performance is not a guarantee of future results. Please Note: All performance figures and illustrations were obtained using historical back testing on a computer and are not the results of an actual account. No guarantee is inferred that future performance will be like the results shown. Futures, forex and options trading involve risk. There is a risk of loss in futures, forex and options trading.

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