Bonds have been in a free-fall since Powell spoke on Wednesday, which means that interest rates are zipping higher.
Rates & Houses
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.
Broken Bonds
On Friday of last week, I pointed out that TLT (bonds) had broken their ascending channel. Well, that was the signal. Today they fell with some more gusto.
Channel Intact
Today was yet another victorious one for the bulls (there have been 52 lifetime highs on the S&P 500 this year; and I’m not being facetious; that’s the actual number). But before we get too carried away, allow me to share once again this ratio chart of the S&P and the 10-year rates. Take note of the resistance line and that reversal top.
ETF Reflections: Rates
Preface to all ETF Posts: I am composing this on Thursday afternoon, so the charts will be up-to-date as of then. I wanted to make some general comments about specific ETF groupings, principally to give me a little time to not have to worry about creating new content for you good people in the near-term.
Interest rates basically ARE the markets these days, and they will be heavily influenced by the forthcoming yammerings from Jackson Hole. Here we see the lovely ascending channel I’ve drawn for TLT, which approached its midline on Thursday. I don’t think the 40 year bond bull market is over. Indeed, I read a compelling piece which stated that the Fed would be forced to get real interest rates to – – hold on to your cowboy hat – – NEGATIVE 15%.
Better Bonds
Now that some time has passed, I have redrawn my TLT trendlines. This time, I am using the channel tool, which by definition demands the prices be confined within perfectly parallel lines.
