The “Power of the Pattern” suggested to buy bonds on 4/14 in this post (see post here) Since that time, TLT is up over 5%. Some say that is not a bad year for bonds.
Now due to key fib resistance coming into play, the “Power of the Pattern” is suggesting aggressive investors should attempt to score on defense.
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Not only is a few resistance levels in place for TLT, Sugar (SGG) has been a decent leading indicator for the future direction of interest rates, is breaking from a steep falling channel. (see Sugar post here)
Game plan….Aggressive investors should take a stab at owning TBT, with a stop on an upside breakout should TLT keep pushing higher. If TLT rallies more than 2% from here, you will not want to own TBT from that point forward.