Risk-On but Beware of a Pullback
Bonds have broken a ranging period that they've held for months. Yields are near 7-year highs.
That being said there's a big retracement starting to form on 30min/4hour charts so watch for it to test one of the Fibs. As you see it just broke 236 so it’s likely it will make a run for 382. The Kovach Indicators seem to confirm this.
It seems we will likely form another ranging period before the markets move further. Remember how much trouble we had with 3%...
As for the sentiment, it’s difficult to say. There do not seem to be any significant developments in the trade war saga. There's this Kavanaugh witch hunt, which is likely to go the way of the Russia investigation: holding an empty sack. I think investors are starting to catch on that the deep state is going to do anything and everything to spite Trump and derail anything he tries to do or anyone he tries to appoint.
Stocks are looking flat, but they're near highs. Expect some retracement here. This agrees with my above assessment in bonds. Both have pushed respective highs/lows, so a retracement is due. Also, regarding stocks, lately there seems to be a lot of stocks that have had their price targets raised, which is always generally risk-on.
Finally, Brexit talks seem to be progressing toward conclusion despite this.
That being said there's a big retracement starting to form on 30min/4hour charts so watch for it to test one of the Fibs. As you see it just broke 236 so it’s likely it will make a run for 382. The Kovach Indicators seem to confirm this.
It seems we will likely form another ranging period before the markets move further. Remember how much trouble we had with 3%...
As for the sentiment, it’s difficult to say. There do not seem to be any significant developments in the trade war saga. There's this Kavanaugh witch hunt, which is likely to go the way of the Russia investigation: holding an empty sack. I think investors are starting to catch on that the deep state is going to do anything and everything to spite Trump and derail anything he tries to do or anyone he tries to appoint.
Stocks are looking flat, but they're near highs. Expect some retracement here. This agrees with my above assessment in bonds. Both have pushed respective highs/lows, so a retracement is due. Also, regarding stocks, lately there seems to be a lot of stocks that have had their price targets raised, which is always generally risk-on.
Finally, Brexit talks seem to be progressing toward conclusion despite this.
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