Falling US Interest Rates-What It Means For Your Trades, Part 1

23 0 3
Today's THREE key words: INVERSE. CAUSE & EFFECT.
Yesterday I published a VERY BULLISH CHART FOR-TLT. I explained the WHAT (TLT-to rise).
This article will try to explain the WHY.
The CBOE-10 year Treasury Note Yield (above chart) is LOCKED IN A STRONG DOWN-TREND.
This has an INVERSE relationship for price action in-TLT.
As a former quality engineer I would explain it like this:
If you eat too much food (CAUSE) you will gain weight (EFFECT).
If interest rates are falling (CAUSE), then-TLT will rise (EFFECT). These two things have an INVERSE relationship.

For those of you who read my contributions, I have recommended real estate-TLT-Gold-and other Metals.
As interest rates keep falling just ask yourself "What asset classes directly benefit from falling rates?"
Or, in other words, if falling rates are the CAUSE, then-TLT rising is the EFFECT because-TLT is the INVERSE of lower rates.

After you look at the above chart, please take the time to review Part 2 of-TLT vs the 10 year yield.
Part 2 is the chart of-TLT. You will see my examples as to the CAUSE, EFFECT, and the INVERSE relationship of falling rates vs-TLT.
You will see that the trend-line channel for-TLT is not down, as you see on this chart. It is the exact opposite, or INVERSE.

Now ask yourself the question "Do falling US rates have the possibility to affect my trades?"
Good luck to you. Don.

EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out