Hey traders, If we zoom out to check the price action in TLT from a daily perspective, what do you notice? Every single time there is a failure to rotate (hinted via diamond labels), the new expansionary wave leads the market towards a new equilibrium point that so far has been found at much lower prices. I’ve circled each and every instance where these...
3/3/20. Weekly Charts of TLT (20 yr bond ETF) vs TNX (10 Yr Treasury yield) compared. In order to crush high inflation, They raised interest % in late 70's - early 80's. As a result, the rate peaked in 1981 and 10 Yr Yield was near 16% and mortgage rate was 17-18%. People were getting 9% interest on simple CD from the banks. Today, 3/3/20, The 10 Yr yield...
DoubleLine's Jeff Gundlach often refers to the copper/gold ratio as a proxy for U.S. yields. Although this is comprised of two commodities that tend to do well in rising inflation, it can be seen as a growth proxy as well, which in turn filters into where yields are moving. Market participants often allocate to copper when growth is trending higher and,...