Bernanke's strategy may face the "gauntlet" soon ...

tenteddies

Ben Bernanke probably won't be getting any sleep this weekend.

Fighting the market's natural direction in an attempt to alter or manipulate conditions into something they aren't ... is a dangerous game to play.

It is like stretching a rubber band.    Yes ... you can continue to stretch it, but after a while, it requires more strength to stretch it a shorter distance.

That is what Bernanke is starting to face in the 30 year bond market.  We know that he has wanted to keep yields and interest rates low for the sake of housing (and the economy), but investors are wanting to be paid more for what they are perceiving as "taking higher risks".  

There is some point where investors are just going to say no ... and then Bernanke will have trouble on his hands.

We may be getting to a point where the TYX (30 year bond yields) are saying that an Investor vs. Bernanke fight may be close by.

Below, is the 17 year Point & Figure chart showing the 15 year resistance line for 30 year bonds yields (TYX).

Something is going on here ... A market decision point, or face-off could occur very soon.  Such an event would appear around what happens at the 37.90 level on the TYX as seen on today's weekly Point & Figure chart.

As we speak, our Super Accelerator indicator is gaining strength on the TYX, so we could see a battle and an upside run on the 30 year yields.

*** Do not under-estimate the importance of such an event.  It could be a "game changer" that causes duress in the economy along with the necessary re-evaluation of future economic forecasts and projections.

zhyangi

Thanks.

greatinter

good to know

ByStander

这大概是周四写的。TYX周五收39.99.。这下大本大概真的睡不好觉了