Tuesday, December 1, 2009

Treasury Tuesdays

A.) There is only one point I want to make with this chart: according to the accumulation/distribution line, money is moving into the Treasury market. In addition, this movement has been pretty consistent over the last 6 months.

A.) Prices have been rallying since the earlier part of November. Prices are now approaching levels where we had a sell-off.

B.) The EMA picture is bullish: the shorter EMAs are above the longer EMAs, all the EMAs are moving higher and prices are above all the EMAs. However, it's important to remember that as prices rise yields decrease. At some point, yields won't be attractive.

C.) The MACD shows that momentum is increasing.

D.) Again note we're seeing a net inflow into the Treasury market.