The “Power of the Pattern” suggested last Friday that something smelled funny in the government bond market….rates looked to be ready to head HIGHER/prices LOWER . (see rates headed higher post here)
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When you were younger or if have you children, have you ever played or watched the game “whack a mole?” The game is based upon attempting to “whack a mole as it sticks its head out of the ground.” The action of late in TLT reminds me of that game, in that every time it attempts to move above the 97 level it gets whacked on the head and prices fall rather quickly. This level finds several resistance issues coming into play.
Would a decline in the price of TLT possibly send a positive message for stocks and maybe the economy? Yes! The action of the U.S. Dollar today (scary opportunity at hand) could very well put downward pressure on TLT!