Posted To: MBS Commentary
If you observe nothing else from anything I’ve written this week, it should be the calls for a technical correction on Wednesday and Thursday. Those had to do with the charts I kept posting showing the 7 consecutive breaks above the upper Bollinger Band in 10yr yields. Certainly, there aren’t groups of anxious traders sitting around counting the breaks of the upper Bollinger band! It’s not as if this is some secret crystal ball that let us know the bounce was coming. But it was meaningful, and there are probably dozens of other ways the same point could have been made using charts. The point was/is that we don’t have any examples of an 8-day stretch of Bollinger breakouts. So a bounce back became all but guaranteed after the 7th breakout. Either that, or things would have gotten…(read more)
Via:: MBS MID-DAY: Bullet Dodged After Weaker NFP, But More Coming?
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