Bond Yields that is!!! 12 days ago a weekly quiz was suggesting to “short yields/buy bonds” up against key falling resistance (see post here) Below is an update to a “bearish yield pattern in the 30-year bond.”
A potential bearish H&S pattern is taking place at the top of the 17-year falling channel!
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Does it seem odd that rates are falling and bond prices are moving higher, along with stocks? It does to me! This is a prime example of why I believe in the “Power of the Pattern!” Some extremely bright money managers are shorting bonds right now, yet from a price/pattern perspective, it appears the profitable play of late has been to be long bonds.
Is the metals decline the last few days suggesting more strength is to come in the bond market? Have no idea, will just follow the price!
Game plan…Remaining long bonds (TLT, IEF & LQD) with a stops a couple of percent below current prices.