Bonds: Back To Breakout

shutterstock_1713590722The bond market is key.

If interest rates breakout from this point, we’ve got a set-up that mimics August 1987, on steroids.

The chart below shows ten-year interest (rates up, bonds down) is back at the trend-line.

It’s before the open and pre-market (as of this post) also has the ten-year (and the TLT) trading lower.

Two well known and liquid inverse funds for bonds are TBT (2X-inverse) and TMV (3X-inverse).

A price action insert of TBT, is shown on the TNX chart.

There’s a potential for today’s price action to make a new daily high.

If so, a possible trade (not a recommendation) would be an entry at the last session high, 15.74, with the stop at the last session low, 15.50.

If such a position could be opened, the risk therefore is 0.24-pts, barring any catastrophic adverse move.

2020-08-25_23-03-54-TNX-Daily-3-bar-notes

 

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.
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