Short Term Trading Member Forum

[techcharter]

AAA ABX Mortgage index followup comments.

I've only been keeping an eye this one index, so I am surprised AA and riskier indices were less volatile. I keep and eye on the AAA index because I believe it represent the cream of the crap and trades more like the major US stock markets. Since there was a huge rally and equally strong selloff, I see greater underlying weakness in the morgtgage market, and possible major top and reversal taking place.

Friday 15 October 2010 the 10 yr US treasury bond yield broke the upper declining channel. The buying mania is at least taking a little rest for the next week or two.