Yields, Small Caps and Tech

The $10YRYLD is in a 3rd wave advance. I’m sort of guessing here, but this is my expectation: I expect the rally to change its slope of ascent (soonish?) as it approaches that trend line, react off that trend line (broader discussion of what that line is here) and then do…I’m not sure what exactly, but sort of wrestle with that trend line for a while in some way.

That’s when I believe the Naz will begin going off in its 3rd of 3rd minor wave leading to its 3rd intermediate wave (ignore all the giberish, but I mean the most powerful central ascent to its next top). And that’s when some of these rate-sensitive reflation names should consolidate or correct.

10YRYLD

Just as an aside, look at how $CCL broke up from an almost identical structure:

CCL

lol How’s that for rate sensitivity? My greater faith in the right shoulder on yields over my faith in a bear wedge is among the reasons why I reversed my $CCL call here.


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