The 40 month old bear market in bonds continues! My view is that the most recent pattern, a bearish right triangle, portends continued good fortune for interest rate bulls.
I mean, just look at this chart of the ultrashort-on-bonds fund. It looks fantastically bullish. Thus, mortgages that have leaped from 2% to 7% will be on their way to double digits. That’ll be just PEACHY for the economy, doncha think?
Here is a longer-term view of the continuous futures contract. Those three massive domes preceded a core trendline breakdown (formerly supported where those green tints are). Wouldn’t it be nice we could use the phrase “40 month bear market” with equities as well?
