The Power of the Pattern shared that interest rates were ready to blast off and government bonds could get hurt on 5/3 (See post here)

Since then rates are up 40% and TBF the bond short has made as much as SPY has for the Year (see TBF performance here) 

Could the bullish head & shoulders pattern in interest rates be causing bearish Head & Shoulders topping patterns to take place in the Real Estate complex?


The 3-pack above reflects a bullish inverse head & shoulders pattern in yields (left chart) and the potential bearish head & shoulders topping patterns in Real Estate ETF (IYR) and Home Builders ETF (ITB) .

I understand that many didn’t believe rates could rise this fast and understand that many will doubt that Real Estate could do the opposite.

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past