STA Blog

How bond traders use charts: without being technical analysts

Did you know that there are an awful lot of market professionals out there who are not technical analysts – yet they use charts all the time. As a technical analyst you might well believe that you have little to learn from them; wrong, of course. First and foremost, if you want to work in a dealing room you must understand the way others work; only then can you out-fox them. Whether it’s with ingenuity, new techniques or whatever, the ability to get under their skin and pre-empt their next step gives one a great edge. It also makes for a far more cooperative environment.

This week macro rates expert (covering bonds, swaps, futures and options on interest rates) at Mako Financial Keith Grindlay wrote a macro piece about the US interest rate outlook. He compared it to the last time the Fed put up the repo rate – which was as long ago as 1994. Using his preferred charts he explains his thinking.
Look at the ones he’s using, and what a long term time horizon is involved; I think you will agree that this is probably surprising. While using very simple charts – and what exactly is wrong with that? – he also notes the increased appreciation of what these can offer.

‘There are still those who want to compare 2015 rate hikes with 1994. As Macro Thoughts has highlighted already this year, the move by the Fed in 1994 was seen as a shock, though technical analysis should have warned traders not to be long and markets today are better aware of technical analysis.’

What is also very evident in this his weekly piece is the breadth of knowledge required, the historical context, and the insight needed to see disparate pieces of the puzzle and explain how they are connected. A little something for everyone here, I think.

Please click on the following link to read the whole report Macro Thoughts August 2015


Posted in Finance, General, Markets, STA news, Technical Analysis, Trading
Tags: , ,

The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA. The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. None of the information on the STA’s blog constitutes investment advice.

Not ready to join? Stay Updated

If you want to learn more about membership and being part of the STA, sign up for our updates so we can keep in touch.


Monthly Meetings

The STA holds 11 monthly meetings in the City of London, including a summer and Christmas party where canapés and refreshments are served.


Latest Videos

As a service to our members, many of whom are unable to attend all our monthly meetings, we have been making videos of meeting presentations for several years.


STA Libraries

The STA has an extensive library of classic technical analysis texts. There are over 1000 books in the collection. It is held at the Barbican Library with a smaller...


Market Technician

Latest research and news

More Info

World Class Tutors

STA Course Lecturers

More Info


Be part of something special

More Info


View latest posts

More Info