Courtesy of Chris Kimble.
Do you know what was one of the best things to do on the 4th of July this year, in the financial markets? If you owned government bonds, it was a great time to sell them. If you were open to it, it was an even better time to short bonds.
The chart below looks at TLT over the past 15-years and applies a 16-week performance table to the chart-
CLICK ON CHART TO ENLARGE
Over the past 16-weeks, TLT has declined nearly 14% at (1), this decline gave back some really sweet gains TLT had made the first half of the year. TLT does still remain inside of 13-year rising channel (2), despite the large decline over the past few months.
Joe Friday Just The Facts; If support breaks at (3), TLT could fall another 15%, before it hits rising support channel (2).
Premium Members shorted in July, when nearly 80% of bond traders were bullish bonds. The sharp decline over the past few months has driven bond bullish sentiment down near the 10% level. Long bond holders really want to see support hold at (3) or selling pressure could really ramp up.
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