Intraday Market Thoughts

1.5% Yields

by Ashraf Laidi
Sep 27, 2021 18:59

The latest run-up in US bond yields means business. Bond bears (those expecting higher bond yields) will tell you to watch 1.53/4% for the next key resistance, while bond bulls will suggest you wait til the end of week/month/quarter for confirmation above the 1.49% trendline resistance on the weekly chart. First thing we did this morning when we saw a 200-pt rally in DOW futures and 80-pt gain in Nasdaq futures was to issue a short in NASDAQ to members of the WhatsApp Broadcast Group (see below). The more interesting question for today and next month is why metals held up despite the surge in yields? Perhaps as long as bond yields rise and break-even 10 yr yields (inflation) keep up with them, metals could avoid the ugly scenario of 2013-14. There are other factors at play (global inflation, Chinese growth, USD levels and supply chain situation). For now, we're concerned with taking avoiding USD and Fed risk/noise. One of these trades was issued earlier today to the Premium subscribers.

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1.5% Yields - Whatsapp Nasdaq Post Sep 27 2021 (Chart 1)


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