I remember distinctly the uncomfortable feeling of going in with the then-out of favor d Boys (while the Inflation Express rumbled to a top) back when these triangles were merely the picture of 'potential' for what eventually happened. One day, I am sure to look back at today and remember the feeling of discomfort with the d Boys' case with the herd fully on board the T-Bond express.
For full disclosure, I have been keeping the door open to a short term d Boy event which, while looking less likely now, is still in play I suppose. But as noted before, the level to which T Bonds have been manipulated should be of GREAT concern to people really buying in to the deflation / US Treasury 'safety' story.
A bigger picture reveals a potential grand scale inflation the likes of which we have not seen in modern financial history. Just my not so humble opinion. :-)
And just so inflation bull (i Boys) wiseguys don't get the wrong idea, and lead their herds astray, this in my opinion, will NOT be an equal opportunity inflation as the 2003-2007 specimen turned out to be. I am pretty sure there is going to be deflationary destruction that not even wanton debasement of the currency can stop, in items that still exist on some seedy balance sheets the world over.
As for T Bonds? Well, how about a little dose of inflationary destruction. I have little doubt it's coming.
An informal presentation of technical analysis, market ratio analysis, psychology and macro fundamental opinion... along with whatever else is required to stay on the right side of the markets. The premium NFTRH service takes all of these and more to the next level.
"As a technician, I feel that there are few analysts that offer value for me, but you do. Your work on Gold ratios has helped my analysis greatly." --Jordan Roy-Byrne, CMT (The Daily Gold) 4.9.10
