For My Book - $USB Daily

For my book, the $USB price has already fail-tested the high @147 and come back below its technical formation, a narrowing triangle. But the Federal Reserve is apparently buying 91% of the long dated treasuries out of the market, which has made it very difficult to call.

With the jobs report, treasuries will naturally sell off, as they have this morning. The sudden down-plunge in the long dated treasuries price gives impetus to the idea that a major price adjustment is coming.

http://quotes.ino.com/chart/?s=CBOT_ZB.H12.E

Marc Faber has been calling this market for a while and been wrong, though the reasoning is that equities that pay dividends will outperform. That GBN.V is in direct competition with the bond market is a given, and should pay out its dividends to shareholders, otherwise face a hostile bid.

http://www.bloomberg.com/video/84596910/

http://talkdigitalnetwork.com/2012/01/dollar-index-t-bond-trends/

supersize: http://www.flickr.com/photos/11747277@N07/6812025381/sizes/l/in/photostream/

stockcharts.com

-F6