The Bond Rally Is Not Over
- Posted by Greg Harmon
- on October 16th, 2012
Yes, there is debate and discussion about the the trade of the century reversing and US Treasuries finally falling in price. That is looking more and more possible as the weeks go on. In fact I am short some Treasury exposure via the iShares Barclays 20+ Year Treasury Bond Fund, $TLT. But where Treasuries are rolling other debt is still going strong. Take a look.
iShares iBoxx Investment Grade Corporate Bond Fund, $LQD
The iShares iBoxx Investment Grade Corporate Bond Fund, $LQD, remains moving higher in an ascending wedge. From the 2008 low it has given up the steep 1/8 Gann Fan for the 1/4 and then the 1/2 but still has a long way to go before reaching the 45 degree 1/1 Fan. there is nothing there to suggest a stall in the money flow into investment grade bonds with the Measured move on the current leg at 125.
SPDR Barclays High Yield Bond ETF, $JNK
The SPDR Barclays High Yield Bond ETF, $JNK, looks even stronger. It also has given up the 1/8 and 1/2 Fan lines but is holding the trendline support and moving to all time highs. In fact a move over 40.60 carries a price target on a Measured Move higher to 43.60. If you are looking to invest in bonds the outlook is still bright, just don’t look at US Treasuries.
Dragonfly Capital Views Anniversary Celebration
For a limited time the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $600.
This is 20% off of the standard annual subscription price and nearly 45% off of a rolling monthly membership! Don’t miss this limited opportunity! After October Options Expiration Saturday it reverts back to $750.Sign up here.
Want to learn more about Dragonfly Capital Views?
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Premium Earnings 2-22-17: Cheesecake Factory and HP
- Momentum Points to Sector Rotation toward the Russell 2000
- Premium Earnings 2-21-17: TJX
- 4 Trade Ideas in Goldman Sachs: Bonus Idea
- 5 Trade Ideas for Tuesday: Commerce Bancshares, Cirrus Logic, McCormick, Ulta Beauty and Union Pacific
- Top Trade Ideas for the Week of February 21, 2017: The Rest Premium
- Top Trade Ideas for the Week of February 21, 2017: The Best
- SPY Trends and Influencers February 18, 2017
- Macro Week in Review/Preview February 17, 2017
- How This Week’s Top 10 Performed, February 17, 2017
Dragonfly Capital Updates