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Wiley Coyote’s sign in the above chart says it best…this is what owners of Government bonds need right now!
The Power of the Pattern suggested “Rates were ready to blast off and Bond prices could get hurt big time” due to an bullish inverse head & shoulders in yields and a bearish head & shoulders in prices on May the 3rd (see post here)
The above chart is an update on the bearish pattern in TLT, reflecting that the neckline of this bearish pattern was broken to the downside. Yesterday I shared the above chart on Stocktwits (see post here), reflecting that a bearish descending triangle was forming in TLT, which was suggesting bond prices would move even lower.
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Depsite whatever the Fed was going to say in their minutes release yesterday, this pattern was bearish and suggesting lower government bond prices and higher yields were to come!
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This chart covers the period after the post suggesting interest rates were ready to blast off. It reflects that TBF in 90 days more than doubled the SPY gains in that time frame. TBF has made 80% of the gains SPY has all year, in this short window!
Premium & Sector/Commodity Extreme Members remain short Government bonds at this time, owning TBF with a trailing stop.
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