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!
Did I share that bonds will go down and stocks follow? My bad if I did.
On 8/29 I shared to long stocks and short bonds, due to the patterns at hand.
Yields rising could be good for stocks…which so far is happening.
How is it that bonds will go down and stocks will follow? Seems a little counter intuitive to me.
Chris, it would be best to use stockcharts or the like since then we can see the TA and comments ‘evolve’ over time. Taking snapshot images doesn’t really highlight the current state of the market in comparison to what we thought would happen weeks or days ago.