Tuesday, December 29, 2009

Treasury Tuesdays

The overall trend in the last month has clearly been lower. However, note the following:

A.) There have been numerous gaps down. That tells us that traders are dumping IEF shares. Also note the volume spike yesterday, telling us that traders dumped a lot.

B.) The EMA picture has turned decidedly bearish: the shorter EMAs are below the longer EMAs, all the EMAs are moving lower and prices are below all the EMAs.

A.) Momentum is clearly negative as is

B.) The accumulation/distribution line.

A.) Prices moved between two points for roughly four months.

B.) Prices broke through lower support and are now

C.) Approaching price levels from the end of last summer.

In short, there is a big migration out of the Treasury market right now.