Paul Mosgovoy's  Instablog

Paul Mosgovoy
Send Message
Truth is timeless: “Markets never change” – Jesse Livermore, 1923 The early masters, Livermore, Wyckoff and Loeb isolated themselves from the crowd and crowd thinking. None of them ever graduated high-school and yet they each became legends in the market. Their techniques have been time-tested.... More
  • Interest Rates At Inflection Point 0 comments
    Jun 18, 2014 8:19 AM | about stocks: TLT

    The iShares U.S. Real Estate ETF (NYSEARCA:IYR) is interest rate sensitive.

    In general, if rates go up or down, then the IYR will adjust to reflect the higher or lower rate.

    Looking at the Weekly chart of iShares 20+ Year Treasury Bond ETF (NYSEARCA:TLT) below, we can see that it is at an inflection point.

    (click to enlarge)TLT Weekly

    Chart by TeleChart

    The overall trend is down as shown by the trading channel. There has been a counter-trend move in progress for the past six months that now appears to be reversing.

    A move lower in the TLT corresponds to a move higher in interest rates.

    As mentioned in this previous post, since the real estate sector is already in a weak position (technically), a move higher in rates may be all that is needed to begin a significant move lower in the IYR.

    Disclosure: The author is long SRS.

    Stocks: TLT
Back To Paul Mosgovoy's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.