Falling US 10 Year T-Note Yield Vs Agree Reality (ADC)One tool I use to position myself, long or short, is any strong correlation in the 10 Year Treasury Note yield and an interest sensitive asset.
Look at Agree Reality. There is a CAUSE & EFFECT you can use. A classic predictive tool.....
The INVERSE relationship when interest rates fall and real estate assets rise.
Caution: ADC-is also rising because it has a sound business plan. So falling rates alone will not save a poorly run company.
But it sure will enhance a company such as-ADC.
This is why I have been long ADC-many times.
I think it's due for a pullback to $49, and then the uptrend should continue.
As always, good luck to you.
TNX trade ideas
Falling US Interest Rates Vs XME (Metals & Mining)Today's THREE key words continue to be: INVERSE. CAUSE & EFFECT.
Last week I published a VERY BULLISH CHART FOR-XME. I explained that-XME would breakout to the upside..
This article will try to explain the WHY.
The CBOE-10 year Treasury Note Yield (above chart) is LOCKED IN A STRONG DOWN-TREND.
This has an INVERSE relationship for price action in-XME.
For those of you who read my contributions, I have recommended real estate-TLT-Gold-and other Metals.
As interest rates keep falling just ask yourself "What asset classes directly benefit from falling rates?"
Or, in other words, if falling rates are the CAUSE, then-XME rising is the EFFECT because-XME is the INVERSE of lower rates.
Warning-XME has gone up a lot and is due for a pullback. If you plan to trade metals why not look at both XME-and-TNX to help you in your timing?
Good luck to you. Don.
Falling US Interest Rates-What It Means For Your Trades, Part 1Today's THREE key words: INVERSE. CAUSE & EFFECT.
Yesterday I published a VERY BULLISH CHART FOR-TLT. I explained the WHAT (TLT-to rise).
This article will try to explain the WHY.
The CBOE-10 year Treasury Note Yield (above chart) is LOCKED IN A STRONG DOWN-TREND.
This has an INVERSE relationship for price action in-TLT.
As a former quality engineer I would explain it like this:
If you eat too much food (CAUSE) you will gain weight (EFFECT).
If interest rates are falling (CAUSE), then-TLT will rise (EFFECT). These two things have an INVERSE relationship.
For those of you who read my contributions, I have recommended real estate-TLT-Gold-and other Metals.
As interest rates keep falling just ask yourself "What asset classes directly benefit from falling rates?"
Or, in other words, if falling rates are the CAUSE, then-TLT rising is the EFFECT because-TLT is the INVERSE of lower rates.
After you look at the above chart, please take the time to review Part 2 of-TLT vs the 10 year yield.
Part 2 is the chart of-TLT. You will see my examples as to the CAUSE, EFFECT, and the INVERSE relationship of falling rates vs-TLT.
You will see that the trend-line channel for-TLT is not down, as you see on this chart. It is the exact opposite, or INVERSE.
Now ask yourself the question "Do falling US rates have the possibility to affect my trades?"
Good luck to you. Don.