What a unique world we live in…Holding Government bonds is putting a BIG hurt to a portfolio since 9/1 and holding Junk is helping to push it up! I enjoy pattern hunting, looking for ”exhaustion and reversal points” in a variety of asset classes. Could a key reversal be about to take place in the bond arena?
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A clue to the next major move in the Government bond arena could come from a high yield ETF! The narrow pattern at (3) could break down, which would suggest that the 18-year resistance line is going to hold again at (2).
A belief of mine….anything can happen and quality clues can come from what many feel is left field!