9.3 C
New York
Thursday, March 28, 2024

Rising Interest Rates? Tell Me About Them!

Courtesy of Doug Short.

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.


The “No- Brainer” can’t miss trade coming into the first of this year was that interest rates were going to rise. 90 Days ago I shared that bond prices were breaking out, discussed in the “Tell Me About Rising Rates” post (see here).

I shared with Members numerous charts about a rate high/bond price low at the first of this year. One of the key reasons to establish a long bond position was due to this: Interest rates had the largest 18-month rally in the past 30-years, up 50% more than the seven largest rallies in the past 30-years!

MarketWatch reported earlier this year that 100% of economist predicted that rates would rise. Wonder how that prediction has worked out? Year to date, TLT is up twice as much as the S&P 500.

Click to View
Click for a larger image

The chart above highlights that the yield on the 10-year note has been falling since the first of the year and is now on rising support. IF support breaks, the next key support line comes into play around 15% below current levels.

If yields break support, would they be sending a message about the strength of the global economy? What happens here at support I feel is important to more than just the bond market!

Kimble Charting Solutions
For information, send an email to services@kimblechartingsolutions.com.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Stay Connected

157,452FansLike
396,312FollowersFollow
2,280SubscribersSubscribe

Latest Articles

0
Would love your thoughts, please comment.x
()
x