Experienced traders know the implications of a market that becomes parabolic.
The bond market continued its recovery , supported by the weak economic data and benign inflation news. In fact, according to what I read and hear in the mainstream financial press, the only signs of inflation were in the floats of the Macy s Thanksgiving Day Parade. The bond market is now at an interesting juncture. It has retraced 61.8 percent of its decline from the January 96 highs of 122 to this summer s lows of 106. I suspect at least some back-up in yields from here and the potential of intermediate term highs, which in Elliot wave terms would mean wave 3 to the downside could be the structure .