Notes
- Michael uses bond market (T-Bonds and T-Notes) analysis to obtain an intermediate to long-term bias, i.e., the outlook for the next three to six months.
- It builds an idea of where the market wants to go based on fundamentals without looking at the numbers.
- Basic characteristics between the analyzed markets:
- Interest rates higher
Dollar goes higher. - Interest rates higher Bond market goes lower.
- Interest rates lower Dollar goes lower.
- Interest rates lower Bond market goes higher.
- Interest rates higher
- To determine future direction, we look for divergences between the following markets:
- USDX
T-Bonds. - T-Notes T-Bonds.
- USDX
- Nothing moves in the financial sector without interest rates.
Macro Economic To Micro Technical - SMT Between USDX And T-Bonds
Macro Economic To Micro Technical - SMT Between T-Bonds And T-Notes
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