IEF trade ideas
IEF - short US TreasuriesI posted a chart back in July 2018 on this etf that was just a bit early on the turn in US treasuries but has that move up reached it's conclusion? This count would reckon so as it posits the completion of a 5 wave move..... (as a side effect does this also mean that we will see a decent rally in the markets?)
SHY-1 to 3 year Treasury ETF-Trendline breakdown Forming H&S TopTreasury yields have been rising over the past two months, with 2-10 treasury yield spread reaching 29 bps on 12/20/2019, highest level since June 2019.
The 1 to 3 year Treasury ETF - SHY broke below the June-November 2019 trendline last week, forming a head-and-shoulder top. Based on the project, the treasury bond ETF prices could target 83.95 area, retracing 50% of the 82.85 (November 2018 low) and 85.12 (August 2019 peak) swing in the next few months.
Happy Trading!
IEF - US treasuries - bullishI (kind of) called this uptrend in US treasuries back in a post in July 2018 but it stalled at resistance with this decent correction. Is this now a possible route for treasuries to take in the coming weeks? Perhaps coinciding with a decent correction in equities? Before equities embark on another leg up? Questions, questions.......
$IEF Bond Rally FadingDespite the market chatter of rate cuts by the Fed at the end of July, it seems that one area of the market that is not paying much attention are US 10-Year Treasuries ($IEF as a proxy).
After posting an "Evening Star" pattern on July 3rd, US Treasuries have been selling off since. As can be seen in the attached chart, the RSI has been showing negative divergence in relation to recent price rises, indicating that investor sentiment is fading, despite prices marching to record highs. Furthermore, the price is fighting hard to stay within the FR100 at $110.40, indicating that it could fall out of this area any day now.
Going forward, it appears that the rally in US 10-Year Treasuries is fading, and caution investors to take heed in this space