Investors continue buying US Treasuries. Why would they do this knowing that the Fed is going to raise interest rates next week?
Higher US/German and US/Japanese rates differentials explain most of this rush into US Treasuries.
Friday, the 20DMF was rather bearish all day long.
The NQ8 sector as well as semiconductors produced a short signal on Friday.
In all honesty, this negativity could also be due to options expirations and the S&P500 rebalancing.
Conclusions:
I do not believe that there is much to gain to be made into being long US equities markets here.
I am however still long US Treasuries. I believe that the Fed will not offer hawkish guidance on Wednesday as trade issues get more serious. Hence, I suspect that there will be a buying rush on US Treasuries this coming week.