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Long Bonds: Right Triangle Reversal Pattern Suggests More Declines in the Offing

Published 08/31/2023, 04:41 AM
Updated 07/09/2023, 06:31 AM

Even though it’s hard for me to imagine some kind of “shock event” from the pre-open jobs report this Friday, I look forward to seeing how the market – – particularly the bond market – – reacts.

The reason is that in spite of the recent rally, the bond market (represented below by way of iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT)) is still sporting a very good right triangle reversal pattern, and provided we stay beneath that horizontal line, it has a very good chance of more serious diminishment in price.

TLT Price Chart

Looking at this upside-down, by way of the ProShares UltraShort 20+ Year Treasury (NYSE:TBT) (which is the ultra-short ETF for bonds), we can see the very bullish pattern (which, being inverted, means a bearish pattern for bonds) shaping up.

I’ve drawn a supporting horizontal line here to illustrate what I believe is key support for TBT, which is a good proxy for what interest rates are doing.


TBT Price Chart

Latest comments

Why are you trying to confuse and fool retail investors? Such kind of manipulations should be banned, seriously
don't trade if you're confused. This post is not confusing.
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