Sunday, January 25, 2009

Treasury Bubble is in the Burst Mode. TLT, TYX, TNX, FVX, GDX, HUI, XAU, SLW, AUY.

As we have discussed before TLT has broke down below MA50 from Head and Shoulders Bearish formation. The picture is very weak and if we are considering that FED is already in this market buying it means that investors have started their massive exodus from this overinflated market. Rally in a general market will help to pronounce that inflation is back and efforts to weaken US Dollar by the FED are working: Deflation Death Spiral will be avoided by all means. This market could have a spike up to retest MA50 as resistance, but its Head reading is showing Investors Irrational Delusion about their ability to withstand massive debasing of US Dollar efforts by the FED.

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