Replies to post #44692 on Short Term Trading Member Forum

[blasher]

AND . . what does that mean to you ??
Risk is lessening . . .
or Market about to Crash ??

[slinky]

Hi Tech. I see mostly the AAA rated indexes dropped significantly over the last 3-4 days, but the AA, A, and BBB rated ones dropped minimally. Kind of the opposite of what you'd expect? I don't understand this ABX stuff very well. Could you shed what you've been able to figure out from all this? I don't see any change or concern looking at LIBOR. TIA
Slinky

[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.