fixed income has bounced rather nicely and now the big question is “are we going to go to new highs?”
1.5 years ago, as fixed income flirted w/ the all time highs for 5 months we correctly saw multiple correlations that put the sell pattern present in context …
http://allstarcharts.com/are-interest-rates-at-a-key-inflection-point/
from there, the bonds fell pretty hard into the lows that were hit a couple months ago:
http://bartscharts.com/2013/08/20/fixed-income-revisited/
this happened BEFORE the infamous FED meeting last month and I held my stance that the Buy Bonds (Sell Yield) was the side of the trade to be on:
http://bartscharts.com/2013/09/18/bruce-buffer-of-ufc-and-the-fed/
now, the question is will the bonds seek new highs suppressing yield to a great degree? there is a count that favors this action, but honestly, I don’t know ..just have to realize that the correction that has occurred in fixed income is almost precisely in line w/ the “normal” corrections that have occurred in the context of this 30 year BULL market. things are truly about to get very very interesting ….
