Turning the Corner

As a fundamental trader the market conditions have been ridiculously difficult over the last few weeks, at times it has reached the point of the ridiculous and I for one hopes it settles down and starts respecting fundamentals once again.

In the last month there has been huge amounts of money pushed into US bonds as market participants run for the safe havens namely gold, and US paper. On April 13 of this year US 10 year bond contracts hit a record short level of 247K, since then they have been steadily falling and are around 150k as of last week. To me this suggests even though we still have big shorts in 10 year bonds and massively uncertainty around the future of the euro some market participants are starting to buy the bottom, when money comes out of safe havens like bonds it normally ends up in risk assets like currencies and equities. 

I am horrible at picking bottoms but I do like to watch trends for clues to long term shifts in the market and it seems we may be slowly starting to see this shft. On US and European markets especially there are bargains a plenty and ultimately every instrument reaches the "TOO CHEAP" factor, what discounts buying in this climate is fear so if we can manage a few weeks without fear then we could see a shift, if only temporary.