What does this show? The Move Index, indicates the volts within the bond market, yield movement is an important factor that everyone should keep in mind, even if you don't trade the asset.
Now, this is more of an advance level:
Fixed-Income division: As we all know, volts has been up, it's been like 🥢 is what I call this market when it comes to US indices, I use it as hedge just like I use the VIX with ES. We all know we are in a bear market it's very different to what we experience in the pandemic there are major shifts have occurred and will be occurring for the months and years ahead. What does this mean for Bond market? Well, due to inflation pressures globally, dxy heads higher, but most markets I trade is US bonds we have inverted when it comes to yields 2/10yr to negative state... What does this mean? Simply we may have stagflation or recession heading in next 18-24 months. Now sure, that could head earlier into that, inflation figures are at record highs, GDP figures getting questionable and let me tell you something it's hurting us as consumers no matter what country you are in, I'm sure in UK residences you'd had a your energy bills - lovely weren't they (Sarcasm). Take a look at history of cycles, and actually last time china came into help but I don't think they will this time but this cycle is obviously different but a change is yet to come further. This is explained in-depth in the week ahead videos, but most importantly - DO YOUR OWN RESEARCH! It's so important to test various tools out in trading and see what suits you personally best. There is no one set way of trading, we all got various different plans.
I have been using the MOVE index with 2/10/30yrs and it's been working out great, just little tip for you guys on how many great metrics there are out there that can help make you make investment decisions. Those groups I am part of know what trades I am part of .
Next great move will be coming as we have had Feds minutes, Hawkish but we also have had plenty of Fed speakers and now we could rally even more 50 basis hikes and most of it is priced in as market is forward looking...Now don't forget higher dollar, the yen another currency pair that was great to be looking out on, housing market🎈, credit spreads, think about EM market! Things are going to get even more interesting! Stay tuned
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