Friday
Our thesis has been that interest rates are trending higher.Even Joe Manchin sent Jerome Powell a letter suggesting they stop buying bonds and pay attention to inflation.
today's jobs report suggests over 900,000 jobs were created in July. That means there is an expanding economy and no reason for the FED to keep rates at near nothing. The bond market quickly dropped 1.5 points. Now at mid day TLT the 20 year dated bond fund is down 2.35 or 1.5%. It appears the upward correction in price has finally ended.
All our previous attempts, make that failed attempts, at wave labels are shown. But assuming TLT closes here or lower the uptrend appears to have reversed.
TBF a fund that bets on falling bond prices and higher interest rates
this is the opposite of TLT and it too looks to be reversing direction. discosure I own TBF as well as Sept 17 call options on TBF.
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