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These Breakouts Suggest Lower Rates

Published 08/11/2015, 03:13 PM
Updated 07/09/2023, 06:31 AM

20-Year T-Bill (L), Utilities

Its easy to turn on the TV or go on the web and find a discussion about how the Fed is going to raise rates.

Government bonds and utilities are often viewed as being sensitive to interest rates. If billions of people think rates will rise, they usually sell rate sensitive -- and the opposite is true as well.

Lately it seems that some feel that interest rates are actually going to head lower, as (ARCA:TLT) and (NYSE:XLU) are both breaking above resistance of these bullish, falling-wedge patterns.

Utilities were among the worst-performing sectors as of a few weeks ago and now they're pushing higher, acting stronger than the S&P 500.

Full Disclosure: Members are long both of these holdings for the past few weeks.

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