Despite the numerous calls at the beginning of this year for a bond bear market by analysts relying on either fundamental or technical wishful thinking, bond yields are dropping in an environment of rising stocks. This is the worst of all possible worlds for bond bears and they are ready to quit given that voices for a bond market decline are not heard any more. When they give up, bonds prices will reverse and yields will rise again. This is how the game is played. The losses are the tuition paid for learning how to play and the education is for a lifetime for most.
TLT is about to test the resistance at $120.70 I have mentioned in other posts. If it breaks above it then the next test is the 200-day simple moving average resistance currently at $122.47. The RSI(14) is rising fast towards overbought territory and the MEI(14), my proprietary indicator, us also rising indicating increasing momentum.
When the bears are out, the market will reverse as there will be nobody for the major players to profit from.
Disclosure: no relevant positions at the time of this post
Charting program: Amibroker (Charts created with AmiBroker – advanced charting and technical analysis software. http://www.amibroker.com/”)