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.
Given the recent rally in bonds from the beginning of the year, some relief from the rush into them is expected as investors look to re-position themselves as the moves in Europe begin to take shape. While the Fed continues to communicate longer than usual stimulus to ensure low rates, the bonds are especially sensitive to outflows into other markets as investors...
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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.
Rising wedge and bullish divergence signify that we are going to be seeing a correction in the 10yr note. Agree or disagree?
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...
Bullish as long as we get a sell off in the equities. And as long as we stay above 109. TLT has made higher highs and will break out once we get a sell off in the equities. Even though rising interest rate means prices will go down. A sell off in equities will re direct investors to bonds, at least in the short term.