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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
  • Market At Extremes And Interest Rates Rising 0 comments
    Jun 20, 2014 8:47 AM | about stocks: TLT

    This previous post showed that the iShares 20+ Year Treasury Bond ETF (NYSEARCA:TLT) was at a potential inflection point.

    After the TIPS Auction during yesterday's session, the overall bond market turned lower (yields rising).

    This event has generated a potential out-side down reversal (at times referred to as a "key reversal") bar on the weekly chart of the TLT.

    (click to enlarge)TLT Weekly

    Chart by TeleChart

    The inflection point appears to be in-effect. Bonds have made a pivot and are heading lower.

    Meanwhile, the news is all abuzz about the gold market and its miner proxy the Market Vectors Gold Miner ETF (NYSEARCA:GDX).

    The move in the GDX certainly is/was a trade that has provided an opportunity for a fast gain.

    Even though the rise in gold has been spectacular, the move has only served to bring GDX back up to the top of its wedge pattern as seen below.

    (click to enlarge)GDX Weekly

    Chart by TeleChart

    How GDX behaves from this point forward may give some clues to whether or not the nascent bull is sustainable.

    Meanwhile back at the ranch, it is beginning to look ominous for some type of market shock if rates continue to rise.

    Disclosure: The author is long SRS.

    Stocks: TLT
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