With futures indicating an open at 7080 for the NDX, the downside target Zenolytics has been discussing for nearly two weeks now is about to be hit.
It's not just that the hook for the market is about to be triggered, however. It is being triggered as both the ten and thirty year yields are hitting significant historical support levels.
What has happened to the ten and thirty year treasuries in recent months is that they have turned into safe haven zones without regard for economic fundamentals. In other words, they have become a contrarian, get me into something safe play.
The entire yield curve analysis the market was obsessed with in Q4 2018 is playing out again in real time without market participants realizing that treasuries no longer carry the canary in the coal mine attribute they once did in the distant past.
As it stands currently, treasuries along the long end of the curve have gone parabolic as investors are clamoring for safety. And then there is this type of activity taking place in money markets. A fear ridden, panicked stampede into a brilliant future of negative real rate investment returns.
This level of primordial fear among investors is taking place against a backdrop of significant support coming into play for technology at current levels while interest rates collapsing in recent weeks has led to a very attractive risk/reward proposition for equities versus fixed income yields.
As we have now nailed the downside target for the markets as the calendar flips to a new month, with fear running rampant among every pedigree of active investor, it is time to approach the markets from a contrarian perspective, believing that all commonly available information is misinformation.
Sellers be damned, this is a significant buying opportunity beginning tomorrow morning.
Zenolytics now offers Turning Points and ETF Pro premium service Click here for details.
Disclaimer
This website is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained on this website constitutes investment advice.
This website should not be considered a solicitation, offer or recommendation for the purchase or sale of any securities or other financial products and services discussed herein. Viewers of this website will not be considered clients of T11 Capital Management LLC just by virtue of access to this website.
T11 Capital Management LLC only conducts business in jurisdictions where licensed, registered, or where an applicable registration exemption or exclusion exists. Information contained herein is not intended for persons in any jurisdiction where such distribution or use would be contrary to the laws or regulations of that jurisdiction, or which would subject T11 Capital Management LLC to any unintended registration requirements. Visitors to this site should not construe any discussion or information contained herein as personalized advice from T11 Capital Management LLC. Visitors should discuss the personal applicability of the specific products, services, strategies, or issues posted herein with a professional advisor of his or her choosing.
Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding capital markets or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in, the transmission thereof to the user. With respect to information regarding financial performance, nothing on this website should be interpreted as a statement or implication that past results are an indication of future performance.
