Charts That Make You Go Hmm…
10-Yr Swap Spreads hit their lowest level since 1988 on 3/9/10 hitting 3.25. How many more days until they go negative? (Click on chart to enlarge)
10-Yr Swap Spread
Go short Treasuries, its the most obvious trade ever right? While they might go up or down the MOVE Index continues to forecast less and less volatility, which at least to us indicates that the market is not expecting yields to change a whole lot anytime soon. (Click on chart to enlarge)
MOVE Index
Not sure if Chanos is right on China being in a huge bubble, but looking at the chart it appears as though at least a few investors are less than bullish. (Click on chart to enlarge)
FXI China ETF
We just crossed the one year anniversary of the current rally/bull market the other day. Over that time on a weekly closing basis the SP500 is up over 66%. This has been the largest one year rally in over 60 years. We are starting to hedge our long exposure as we are currently cautiously bullish. (Click on chart to enlarge)
SP500 1-Yr Rolling Returns
Back in December we shorted the Euro on the basis of the EU being weak, overvalued, and sentiment becoming far too one sided. In these pages we also looked at buying the USD on a technical basis. Looking at the USD and T-Bills however shows another reason for the USD rally. (Click on chart to enlarge)
US Dollar and T-Bill Yield
Happy Trading,
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