Mid term elections - there may be a purge, but one place where I know a purge is happening is in the bond market. Prices of Bonds have been falling, raising yields, for almost 2½ years. But it was not until September this year that the perspective changed. That is when Bond prices dropped below a 30 year rising channel. The chart below shows the story.
October continued to see bond prices falling and early into November there has been no change. Should this month continue to trade lower that would make 3 months below the channel. Momentum continues to be weak and bearish. The RSI is deep into bearish territory with the MACD falling and hitting extreme levels. The Purge is on in the Bond market. May those that ran a 30 year bull run higher figure out that their time is done and manage risk properly.
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