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Monday, August 12, 2013

Elliott Wave Update ~ 12 August 2013

Again, too many short term options to consider so we step back and look at this chart to keep things in perspective. It looks like a big hand-off to retail buyers.
I consider this one of the most important wave charts I have.  A jump in short term yields will bring about an interest rate hike from the Fed. And that hike will be a self-reinforcing feedback mechanism to finally crack the historic credit bubble we are in.  And it will help dry up liquidity.

Looking for a move up in the 6 month yield rate at least toward resistance of the downsloping trendline. Short term rates are pretty much "off the radar" and have been. No one expects a move just quite yet.  But this wave chart suggest that a move up may be closer than everyone anticipates.

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