Happy Fourth of July to Everyone. Remember Our Soldiers Overseas.
3 Month, Daily - July 2 - "ZT-ZN" Spread between 2 Year Treasuries and 10 Year Treasuries point to a bearish move in the market. The MACD supports this indication. This Spread can be used to confirm more volatile moves in the market. It is less volatile and less emotional than the equity markets. Compare this chart with the SPY below.
3 Month, Daily - July 2 - Notice how the channel compares with the Treasury Spread. This Spread can be used to confirm intermediate trends and the A/D's and Internals used on a Day Trade or Swing Trade to keep you on the right side of the trade.
20 Day, 15 min. - July 2 - The move today was right in keeping with the Treasury Markets. The gap down and continuing trend lower was a mirror image of the pattern set by the Treasury Spread. The Trend and MACD both indicate probable continuation to the downside, but never discount the possibility of the "unexpected."
The Spread between 2 Year & 10 Year Treasuries can point the way in the Equity Markets. Capital allocation to different markets indicate Money Flow Direction. The old adage of "Watch the Money" play a big part here. More information on this is available at Think or Swim in the Shadow Lounge section under Seminars. This one is dated July 1. I highly recommend it to those who are interested.
Remarkable Comparisons of Pattern. Note the less volatile action on the left as compared to the S&P on the right.
3 Month, Daily - July 2 - Pay close attention to the MACD as to entry / exit points.
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