Predictions from Hawks Nest

Yesterday, I caught up with Murray Dawes.

This week he’s been holed up working from a mate’s pad up in Hawks Nest in New South Wales.

And there was a lot to ponder this week, as Muzza wrote to Pivot Trader readers:

‘The story of the week is the sharp move higher in the US dollar and the spike in yields across the US yield curve.

‘We are seeing other markets affected by the jump in the US dollar with gold suffering a large fall last night. Bitcoin [BTC] also looks dangerous to me with a weekly sell pivot confirmed last week.

‘Oil prices are also retreating after a strong run over the last few months.

‘Stocks haven’t been affected by the jump in the US yield curve yet, but I reckon we aren’t far off seeing the US 10-year yield shooting through 1.8% and heading towards 2.2%.’

In short…inflation risk up. Threat of higher rates up. US dollar up. Gold down. Bitcoin down. Oil price cooling. US bond yields up. And, in turn, bond prices down.

Hence why Muzz has advised readers it’s a good bet to place some short trades on US bonds.

Anyway, we discuss all of the above in our chat, and it made for a fascinating conversation.