Bond Market Price Metrics: Price, Drawdown, Rogue Waves, Moving Averages, and RSI
Analyzing a crazy bout of volatility
Bonds are supposed to be the safer alternative to stocks. What does safe look like? It looks boring:
But safe doesn’t mean volatility and downturns are impossible - albeit they are not nearly as extreme downturns as stocks (or cryptocurrency):
However, from a rogue-wave perspective, COVID’s shock on the bond market was even more extreme (relative to normal behavior) than what we saw in the stock market:
Turning to moving average analysis, we are back to a boring chart:
But, good old RSI is here to make things interesting, capturing the depth of the bond market being oversold earlier this year and the subsequent rally: