The Purge

• Posted by Greg Harmon
• on November 6th, 2018

Mid term elections are here and it is time to exercise your right to vote. So many of you have been so angry since the Presidential election, I hope that you get your peace. I have no view as to the outcome of the elections but I know many would like to see a purge of those governing us now. Maybe that will happen. But maybe it will not. I can only hope after this election that everyone who has been polarized has exercised their right to vote and them can live with the conclusion.

There may be a purge, but one place where I know a purge is happening is in the bond market. Prices of Bonds have been falling, raising yields, for almost 2½ years. But it was not until September this year that the perspective changed. That is when Bond prices dropped below a 30 year rising channel. The chart below shows the story.

October continued to see bond prices falling and early into November there has been no change. Should this month continue to trade lower that would make 3 months below the channel. Momentum continues to be weak and bearish. The RSI is deep into bearish territory with the MACD falling and hitting extreme levels. The Purge is on in the Bond market. May those that ran a 30 year bull run higher figure out that their time is done and manage risk properly.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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