ROHR TrendView with MyTradingBuddy Video Excerpt
Wednesday, July 8, 2015 (late)
How one feels about that likely rests with their trading or investment approach. Those who prefer relatively orderly price trend evolution might be just a bit uncomfortable with the latest rapid ratcheting between major price levels in most asset classes. Quite a few markets are experiencing price movements in hours that used to take days or weeks.
On the other hand, there are those whose formative experience was the wild agricultural and foreign exchange markets of the 1970’s. That was followed by the wild international government bond markets of the 1980’s.
They are likely very happy to see the return of extreme potentials in the current wide swinging markets. As one who developed his fundamental and technical trend analysis skills in the late great Pork Belly futures (‘bellies’), the shift into government bonds in the early 1980’s was an easy transition.
One particularly highly talented and witty ‘local’ floor trader had switched from the ‘bellies’ over to T-bill futures (closely related to T-bond activity at that point.) He stepped out of the pit after one session had swung around a full percentage point in short-term yields and said, “This is the staid US government debt? It trades more like T-bellies than T-bills.”
After all, ‘bellies’ (from which bacon or rashers are produced) are half a pound of fat. By the second half of the Carter administration the same could be said for US government debt instruments; and they traded in a similarly volatile fashion.
As a highlight and preview, note that Wednesday morning’s video below is also a bit of a tutorial on the importance of a well-developed technical trend analysis. (Also note that after the impressive $40 Tuesday bounce the S&P 500 was testing Tuesday’s low again on Wednesday afternoon.) The analysis write-up visits some key aspects of the ‘Greek-Chinese Over/Under Soup’ that has created such highly volatile conditions. Enjoy.
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