Latest capital flows report from the US Treasury once again puts to rest persistent concerns about China dumping US government debt. The biggest foreign owner of Treasurys increased its overall holdings --including bills, notes and bonds -- by $13.6B in January, following a $47.8B cut in December. It suggests China, like many other investors, sought the safety of Treasurys amid a broad selloff in riskier assets in January that sent the 10-year yield sharply lower. Foreign central banks overall cut holdings in January by a hefty $16.7B, though a lot of that was offset by buying from private overseas investors.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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