In the last few days the main US ‘long bond’ futures contract made a bottom extension, from which a small rally developed and then another dip. The shelf-life of these daily-scale signals is about three weeks, so this is a good opportunity to buy some bonds right now.
A similar thing has happened in one of the Singapore stock indices that we follow – an extension, a small rally and now another dip, although not yet to new lows for the move. Buy this instrument (or other Singaporean equity index) too:
This brings the number of stock index ‘buys’ that we currently have outstanding to 5 and it is also the second bond ‘buy’ in recent days, so there is a concentration of our advice on trades that will benefit from more QE and less disbelief in an imminent collapse. We are longer-term sceptics about a ‘happy ending’ too, but these recommendations are just ‘trades’ to be taken and ridden for a while.
There seems to be a fresh breakdown occurring from compressions in Soya today too, but we have already advised a short there so will only write more on this if there is a change.
RE
