Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in
In the same category

For T-Bonds, a Crucial Test of Support Looms

IMG Auteur
 
 
Published : January 22nd, 2013
442 words - Reading time : 1 - 1 minutes
( 5 votes, 1/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis




Are T-Bond futures breaking down? It’s important that we get it right, since, if they are and market forces are about to lay bare the biggest financial shell game in history, we want to be watching from the sidelines when the inevitable panic erupts. From a technical standpoint, the key number to watch is 143^29, a “Hidden Pivot” derived from our proprietary runes. If this support were to fail we would infer that the selloff had significantly further to go, presumably to at least 141^09, before bulls would have a chance of reversing the tide. By then, however, it could be too late to calm the herd. Interest rates on the long bond would be up by about 25 basis points, to around 3.25 percent, and although that would still be shy of the 3.50 peak recorded last spring, it could suffice to unsettle equity markets and squash a a delicate uptick in real estate that has relied on massive infusions of credit created out of thin air by the Federal Reserve. At the very least, it would give pause to share buyers who have so far gotten 2013 off to a rousing start.


To be sure, T-Bonds have pulled out of tail spins before. Early in 2011, they reversed a nasty decline that had threatened to derail the banking system’s recovery from the Great Financial Crash. And they did so again later that year, saving the day for a mortgage market that might easily have relapsed. This time, however, although T-Bond futures are not in a steep decline, weakness has persisted since summer. Because of this, the markets are in poor shape to withstand whatever shenanigans Obama and the Democrats attempt to pull in lifting the debt ceiling. In fact, the carelessness with which the subject is being debated on Capitol Hill could itself be the catalyst that finally causes T-bonds to “revolt” as buyers other than the Fed itself desert the Treasury’s auctions. We should all want to be long gold and silver when that day finally arrives, as it inevitably must.

Whatever happens, we’ll be watching the charts closely when the March T-Bond contract comes down to 143^29, an occurrence that we would rate as all but certain over the next 2-3 weeks. A breach of that “hidden” support by more than two or three ticks — or still worse, a close beneath it — would be warning of worse to come.

 Click here for a no-risk trial subscription to Rick’s Picks that will give you access to our analysis in real time, as well as to a 24/7 chat room that draws experienced traders from around the world.


<< Previous article
Rate : Average note :1 (5 votes)
>> Next article
Rick Ackerman is the editor of Rick’s Picks, a daily trading newsletter and intraday advisory packed with detailed strategies, fresh ideas and plain old horse sense.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Libertarian Paradox
24 Sepsam_site
As your article suggests, the state claims to insure an orderly environment so liberty can flourish. The reality is that the state promotes f...
The Truth About War and the State
24 Sepsam_site
Waugh Despite rigging as you say, Ron Paul couldn't even get eight states in 2012. He was too honest - with his "we can't afford the welfare a...
John Maynard Keynes, Immoralist
23 Sepsam_site
Intense Article. Behind the scenes, a Globalist cabal requires a champion like Keynes to legitimize the creation of fake money so the central...
What Gold and Silver Analysts Ov...
19 SepS W.
Well here it is 12 years on and never a truer article has been written. Gold is money and every thing else is "toilet paper" .. to paraphr...
Allegations of Fraud Surface Ove...
18 Sepkevthorne
Excellent article, Mish - it's about time this was highlighted - it is happening all the time here in the UK, with insurance companies, 'phone comp...
Ken Rogoff’s Government Debt Def...
18 SepDRGEORGE1
I thought James Grant's dismissal of this dangerous piece of propaganda was good but yours, Peter, was even better. Please, everyone, who reads and...
Allegations of Fraud Surface Ove...
17 SepGoldGrl0
Mish, you should stick to finance. Publishing unsupported attack rumors won't hurt H, but will hurt your reputation.
The Truth About War and the State
17 Sepkev43211
We will never get anywhere with this characterization of the state. The state is not some malevolent monster always seeking war. However, the sta...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS