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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Sealed!
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Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
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Overseas Gap
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.
Rates Bottoming
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.
Trapped Between Gaps
Tesla remains steadfastly range-bound. I’ve drawn a red rectangle anchored to the high and low price gaps. As you can see, almost 100% of trading activity has been confined to that modest range.
Yet-Another-Gap to Watch
I give unto you: Alphabet (GOOGL) with a price gap at 137.42. I bought February $145 puts on this today.
