Via the symbol EWW, we can see how badly Mexico has lagged the rest of the new-highs-every-day world of equities………
By Mike Paulenoff, MPTrader.com
Ahead of this past Friday’s jobs report, we noted to subscribers that our technical set-ups in both the ProShares UltraShort 20+ Year Treasury (TBT) ETF and 10 year Treasury Yield anticipated a positive reaction to the employment data.
The largest mass shooting in US history, and naturally equities are at lifetime highs again. Incredible. Anyway, one chart that remains interesting is that of high-yield corporate bonds, which remains mashed up at the top of a very long-term channel. I recognize that a dividend was issued, and that partly explains today’s weakness, but the downturn from a few weeks ago is more substantial than the dividend. I’ve provided a detailed view of recent activity.
As we noted in our article last week, we have had strong reasons technically as well as from a macro perspective to be bullish on the ProShares UltraShort 20+ Year Treasury (TBT) since its low just under 33 on September 7.
And the TBT has continued to rise since then. It gapped up Wednesday to $35.50 from Tuesday evening’s close at $34.46.
The upward thrust occurred just in advance of the unveiling of the President’s Tax Reform Plan (Wednesday at 3 PM ET), so we have to couch its bullish action under that umbrella. But with lower taxes for most individuals and businesses and a one-time business foreign repatriation tax-break being reasons to anticipate an increase in spending, infrastructure, and investment, higher interest rates likely will be a bi-product of such a policy mix — if tax reform becomes law. (more…)