Short Term Trading Member Forum

[techcharter]

Long Term Bonds and Equities.

When the 1929 stock market collapse began, bonds made one more rally while stocks began their first bear move. If the Dow did form a truncated 5th wave from the October 2003 lows, then it is very realistic that investors will be seeking safety in bonds. New highs in bond prices will be tested. Over the last 13 years, 30 yr bond prices have been very choppy. It almost looks like a bearish wedge (ending diagonal in elliott waves terms) with one more advance to go. The aftermath is a post-ending diagonal bond crash. The Wave A of the bond bear should coincide with Wave C of the equities market.

http://www.financialsense.com/Market/intermarket3.htm