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Talks About : Macros, Global Markets, EM, Market Sentiment, Psychology, Multi-Asset, Technical Analysis, Money Management
Jun 25, 2022 • 6 tweets • 2 min read
Lot of people are convinced that it's short covering thats making US markets rally. They are wrong. Extreme sentiment was already there 2 weeks back when sentiment index went to single digits. What you are seeing now is acceptance in underlying macro thesis by smart investors.
Central banks around the world are close to a pivot. Some pockets of market makers have already realised that. By the time it dawns upon the rest of the financial market participants that yields have reversed and Fed has pivoted, markets would already be much higher.
Jun 19, 2022 • 10 tweets • 4 min read
Nasdaq #NDX has a monthly support around 10800 on a CLOSING basis. 8 trading days left. Given the current sentiment, markets could put a bottom in place after a panic selling.
1/n
On S&P 500 #SPX, the parallel channel has a support near 3520 for the month on a CLOSING basis.
2/n
Jan 20, 2022 • 15 tweets • 3 min read
Bond Yields, Coupon Rates, Equities & Money Flow - A Thread:
Market participants often confuse between bond yields & coupon rates & tend to interpret yields movement wrongly on how it correlates with money flow between asset classes like Bonds, Equity & Cash. So what is it? /n
Coupon Rates:
It is the annual rate of interest of a bond. Like FD rates. Assume you buy a bond for ₹100 and get ₹5 as interest annually, your Coupon rate is 5%. Whatever bonds that are already issued, this rate is fixed (Except for FRBs) and does not change till maturity. /n
