Bonds Heading Lower - TLT

9 มี.ค. 2017

The stock market rally isn't over & bonds may not get bid for a while. Short-term the stock market may see a Wave 4 corrective pullback but my count still shows a Wave 5 leg in the future. Based on my outlook on the dollar strengthening and the stock market continuing to rally I am short bonds. I am slightly late to the Wave 5, so our risk will be a slightly higher than typical.

Technicals
I will be shorting TLT looking for the competition Wave 5. Bonds have completed the Wave 4 correction wave and should be continuing lower.

Fundamentals
The dollar is strong & will continue to strengthen as the Fed hikes rates. Bonds will weaken.


Comment your thoughts and we will discuss.