Yields Down, Price Up
Fixed Income Investing
If you want guaranteed returns on a low risk investment, then look towards fixed income investing. US treasuries are some of the least risky investments in the fixed income space.
$Vanguard Total Bond Market ETF (BND.US)$ $iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB.US)$ $Short-Treasury Bond Ishares (SHV.US)$ $SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL.US)$ $iShares 1-3 Year Treasury Bond ETF (SHY.US)$ $iShares 3-7 Year Treasury Bond ETF (IEI.US)$ $iShares 7-10 Year Treasury Bond ETF (IEF.US)$ $Ishares Trust 10-20 Year Treasury Bd Etf (TLH.US)$ $iShares 20+ Year Treasury Bond ETF (TLT.US)$
Peak Rates
If this is truly the peak in interest rates, then it is likely a good time to purchase some treasury bonds or treasury ETFs. The dot plot is forecasting peak interest rates as it shows interest rates dropping into the future.
If you know anything about treasuries, then you know that when treasury yields are dropping, the price of the underlying treasury is increasing. So if interest rates are not going to go higher, then yields will not go any higher, which means treasury prices are at a bottom, in theory.
You could purchase bonds directly from the treasury or a broker. This way, you would get a guaranteed return based on the treasury yields. Since inflation is supposedly falling, the Fed will no longer increase interest rates, and yields will not go any higher. Currently, yields are higher than they will be for the foreseeable future, so the return from treasurie bonds will not be as profitable if you purchase them at a later date.
Treasury ETFs
I prefer to trade ETFs that track treasury bond's price movements. The ETFs could potentially provide more upside than buying an actual treasury bond. And I would prefer longer duration treasury securities over the shorter duration until the Fed signals cutting. I have highlighted these ticker symbols in the chart directly above.
I should mention that if inflation spikes againg, then the Fed might signal further interest rate hikes. This would potentially bring down the price of treasury securities further. But at the currently inflation appears to be easing, so this could be the bottom in the treasury market, at least temporarily.
As always, this is not investment advice. Good luck trading. Be careful and be patient. Give your investments time. Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. And just follow the trends. A trend is your friend.
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102640653 : How your technical view on Alibaba. Any changes yet to the target price. How is the formation looking going forward.Thanks.
102640653 : Has it broke out the downward channel . If there is a breakout the next target price or resistance .
102640653 : How far t can move in a 1-2 month time frame
SpyderCall OP 102640653 : I have highlighted the new short-term trend by the purple lines. The grey and yellow lines are the resistance/support price points to watch for a breakout or a reversal. If the price can climb above the yellow resistance level and stay above it, then the price action will no longer be in a technical downtrend.
This ticker can easily move 10%-20% in a month in either direction. it's hard to say which direction it will go in a few months' time. the long-term trend is down, and the short-term trend is looking sideways or rangebound so far.
I need to see more upside, and BABA needs to climb out of this technical downtrend before I go all in.
But for the record, I am holding a bullish swing trade in PDD, so I am bullish in the short-term for chinese equities
102640653 SpyderCall OP : If volume n price starts to pick up from this level it will be the best stock to own at current level. First price action need to improve on upside . Thanks .
SpyderCall OP 102640653 : holy cow! did you see baba move in US today. The whole market rallied very strong today. BABA did good also. BABA is near the trending resistance (the purple line) on the chart I sent you. There could be some sellers at this point. If the selling is very strong in china tonight then I might watch for a temporary reversal. This is a strong rally and a little selling here and there is healthy. But any selling should not last long if the rally will continue.
This trending resistance is a weak resistance though so I would be more worried about the horizontal resistance levels that I highlighted in the chart (the yellow and grey lines)
102640653 SpyderCall OP : China n hongkong markets looks to be consolidating. Baba holding up well in this markets. Look like it’s waiting to be pushed up . To the next zone which is 102-105 .
Deposit : TLT and TMF are good plays!