US: 3 M ED yield up + 10 Y yield down => stocks could dive

Catégorie [ Contat 3 m Eurodollar ]

Medium term (March 2012 contract): decline

On a weekly basis, UW / LW spread is expending. A PEI is in progress for our moving averages and our MACD. A NEI is in progress with our 23 weeks moving average.

Idea: lower as long as our MACD is not oversold

Bet: towards MW.

 

R = MW (99.452);         S = MM (99.033)

 

Short term: better than a T1

On a daily basis, UD / LD spread is expending.

Idea: today will be a T2 with an intra-day new low.

Bet: powerful bear trend.

 

R = MD (99.4);         S = MW (99.033)

 

Conclusion: bear trend for this contract (yield up) + rise for 10 Y contract (yield down) => special warning for stocks markets.