Wednesday, November 25, 2009

Treasury Tuesdays

Sorry for being late with this. This week has been very crazy with with are traveling.

A.) Prices broke a two month uptrend

B.) Prices are now in a new uptrend that is confirmed by

C.) A Rising MACD

D.) A very strong A/D line that indicates there is a strong demand for Treasuries and

E.) A rising RSI

I want to return to the strong A/D line as it indicates that even when the market was in a correction in October there was not a flight out of the Treasury market. That is very important considering the equity markets rallied for the first part of October. This tells us there is still an undercurrent of concern in the markets regarding the rally. I think part of this is end of the year, lock in your profits thinking. However, the equity rally is getting thinner -- meaning we're seeing the rally gravitate to the big cap stocks. This is a safety play.