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Would you have guessed 8 months ago that the S&P 500 would hit the 2,000 level and Government bond ETF TLT would be up twice as much as the broad market on the year? I can’t help but believe this has surprised a few investors, it has me.
Premium Members picked up TLT on valentines day and so far the trade has been rewarding, as TLT is up around 12%. At the time of the purchase in TLT, sentiment levels reflected just 20% of investors were bullish bonds.
The rally in TLT has pushed it up against a price point where triple resistance could be coming into play, as momentum is reaching lofty levels and sentiment has shifted a little as 66% of investors are now bullish bonds.