This ETF was in bear channle as we saw rotation out of Fixed Income into Equities. Yesterday it broke down trend line ahead of tomorrow ECB meeting. The longer it will stay above $62 the higher probability it will continue higher. Target at 50/100/200 EMA. Higher rates could make banks more attractive.
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There is no real reason to believe the bond rally is over. Bullish structure and bullish price action. Shorts will just fuel the gentle squeeze higher.
As we fast approach the typical seasonal top for the North American economy it shouldn't surprise us to see the anti-equity-market proxy (bonds) start to look more attractive. While I am not suggesting a trade (low reward to risk ratio on setup prevents me from considering the idea) , I do respect the fact that we may see a nice rally from current levels. Three...