The 20DMF continued to display a linear accumulation while the Cumulative Tick continued to display relative weakness.
Money continued moving into basically all the markets sectors, except for
the retail and biotech sectors.
You can see below that the RR operations increased again yesterday. These operations increased by $50B this week alone. At that pace we will be close to $2T by the end of the Year.
These operations only target the 10Y rates on the secondary markets, which does not seem to ease down.
However investors do believe that the Fed will be able to keep a lid on rates. This is why they are buying Treasuries and gold.
The US$ is more difficult to grasp: it should strengthen with all the RR operations that capture US$, but it should weaken if the Fed manages to lower rates down and hence lower the rate differentials with other countries.
The Futures look rather bullish too.
Conclusions:
We will continue moving higher, but some stocks/sectors look weak.
