Well, that’s that. Both TBT and TLT have sealed their price gaps. It would be QUITE appreciated if that was the limit of the bond move, thank you very much. We shall soon see.

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Well, that’s that. Both TBT and TLT have sealed their price gaps. It would be QUITE appreciated if that was the limit of the bond move, thank you very much. We shall soon see.
Below is a chart over the past couple of years of IEFA, the worldwide equity fund (without including North America). Take note of that dashed line, which is at the price level 67.82. I would propose that, if we can stay below this price gap, this fund remains quite vulnerable to a renewed sell-off, since this is an important pivot point in the context of all this price action.
Plunging interest rates (and Yellen’s little scheme from mid-March) have been the gasoline powering this rally. It is therefore important to watch for any kind of inflection point. The TBT (ultra-short fund based on bonds) is getting close to a crucial price gap, which in my estimation could be such a pivot point.