Short Term Trading Member Forum

[techcharter]

Stock and Bonds 1-2 Punch

The choppiness in the 10 yr treasury yield over the past several years had me extremely confused until today. It appears a WAVE 2 flat will be wrapping up wave 5 0f 5 of C in the next day or so. The size of this flat is impressive as it has taken a little over a year to complete. The next move in yields should be UP as the credit crunch forces everybody to sell everything, including government bonds to pay down debt.

http://stockcharts.com/h-sc/ui?s=$TNX&p=D&yr=1&mn=8&dy=0&id=p50765379558

That leads me to the stocks. My interpretation of the rally off last Thursday's lows is a wave c of a wave 2 flat for most western markets. This pattern should be wrapping up also in the next day or so.

Not to be left out are the Asian markets where the Nikkei rallied nearly 400 points as I write. This is a Wave c of 2 (zigzag) of 1 of 3. So next week the big wave 3-3 is unleashed. The bubbling Shanghai just broke the psychological 5000 mark in what appears to be a very coppy rally the last 2 days. Could this be an ending diagonal?

This is going to be one ugly crash.