Tuesday, August 21, 2012

Morning Market Analysis




Above we see weekly charts for the treasury curve.  The IEIs (top chart) have broken a trend and the IEFs and TLTs (middle and bottom) charts are right at longer-term support.  Also note that all three charts have a weakening momentum and relative price indicators.  Money is clearly leaving the market, indicating that the overall risk on trade is back.

 
The long-term dollar chart shows a slight upward bearing, but certainly not a strong rally.  It's really more of a meandering/moving grudgingly higher rally.

 
Copper is consolidating between the 42 and 44 price levels.  Also notice the importance of the 42 price level from prices established in late 2012.