In the chart below, several types of bonds are testing key support. Bond bears about to rise and shine?
CLICK ON CHART TO ENLARGE
Support remains, by a very thin margin, as can be seen in several types of bonds (Govts, Blends and Corporates) in the above chart. The importance of the above 4-pack? Almost all types of bonds are being challenged at the same time. At this time the only bonds not falling a good deal of late are the high yields.
Game Plan..Own TLT due to a support test trade, with a tight stop. I very well could be wrong on TLT, yet I am not willing to be wrong for long! If these key support lines are broken to the downside, will be looking to score on defense in bonds.
Side note…Am overweighted toward the mid-caps and so far really like the relative strength action of them. (see post here)
I ditched my TLT’s on friday, after holding them since mid-december. I took pain mainly through dollar depreciation versus the Euro… Maybe ditched them at exactly the wrong time…. I anyway wish you all the best with this trade!!!!