On August 29th in this post, I shared that bonds looked to be at a “peak in elevation” and investors should harvest right now! For those willing to score on defense, pick up TBF (inverse bond ETF). Since then the bullish falling wedge has broken to the upside and it now appears, that yields are clearly breaking the falling channel support at (2) below.
For those scoring on defense go ahead and put in a protective trailing stop of 4% below current prices.
P.S. On August 16, according to “Daily Sentiment Index” (trade-futures.com) 98%of investors were bullish bonds! This represents a mighty crowded trade… With this many bulls, bond yields could rally further than many might think!