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?
CLICK ON CHART TO ENLARGE
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.