Courtesy of Chris Kimble
The financial markets are panicking and it’s producing some huge swings across asset classes. One asset that may be producing a monster reversal is treasury bonds (TLT).
The flight to safe havens produced a sharp rise in the 20+ Year US Treasury Bond ETF (TLT). But that thrust higher was met with heavy selling the first 3 days of this week.
You can see this in the first chart below – a “monthly” chart the $TLT.
Thus far, the “monthly” candlestick has produced a monster bearish reversal wick. We have a ways to go until month-end, but if this reversal holds, it could be the largest ever.
And that would be very bearish for bonds on a “longer term” time frame.
The second chart shows the same reversal for yields, but it’s a bullish reversal. Could the largest bullish reversal in yield in history be taking place in the 10-year yield? Possible!!!
The Bond rally and yield declines have created great concerns in the stock markets around the world. Could a bond top/yield bottom be good for stocks? It could in the short-term!
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