This is not what you want to see when looking at the foundation of your home!
This is not what you want to see price action wise if you are long bonds! Have been suggesting to own TBF (inverse Govt bond ETF) for several weeks, yet now cracks in price are starting to take place in other types of bonds.
For a while, only Long-Term Government bonds were reflecting weakness. Now weakness is starting to show up in other types of bonds. For those that own TBF (inverse bond ETF), keep trailing stops at 3% to protect gains. (see post here)
So after a major decline in TLT, down almost 10% and all this bad news….TLT is ready to be a purchase?
None of this bad news was in place at the highs in TLT, now the news couldn’t be worse?
Hop on TLT and watch it go higher!!! 🙂
Chris, I love pictures. By the way, where does this fit in with Dow Transports and Rail going up? Which leads which, I suppose is what I’m asking. Thanks, boss. -William
How are high yields and the euro/yen doing?
FWIW – re: 30yr. auction just finished. From another site: Today’s $16 billion 30 Year auction was about as bad as they get: the yield was 4.32% (highest since May 13), a 5 bps tail to the WI, the Bid To Cover was 2.31, a collapse from October, and the worst since November 2009. Primary Dealers and Directs saved the day taking down 62%, with Indirects responsible for 38.4%. Altogether, this was about as ugly as it could get.