Posted To: MBS Commentary
One tricky thing about technical analysis (things like moving averages and other mathematical formulas applied to charts in order to get them to cough up more information about where they might be going) is that the relevance of any given technical can vary greatly depending on the circumstances. For instance, if bonds have are in a sideways trend for a few weeks, and had been trending directionally in the few weeks before that, the current sideways trend will result in many technicals suggesting that momentum is heading in the opposite direction from the trend seen in the first 2 weeks. Put more simply, Imagine it's July 28th and that bonds have been in a sideways range between 1.52 and 1.62 for the last 2 weeks. Then imagine they'd risen from 1.32 to 1.52 in the 2 weeks before that...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://ift.tt/2acikRw
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