TTT On Bond Market Recoveries: The Bond Bear Does Not Move In A Straight Line

Summary

  • The long-bond futures have made lower highs and lower lows for over two years.
  • Bear markets experience sharp recoveries. Every rally in the long bond has been a sale over the past two years.
  • The three compelling reasons why this trend should continue.
  • The TTT is a leveraged product that moves higher when bonds decline.
  • Buying TTT on dips has been the optimal approach to following the declining trend in bonds.
  • Looking for more investing ideas like this one? Get them exclusively at Hecht Commodity Report. Learn More »

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I bought my first real estate property in the early 1980s when mortgage rates were in double-digit territory. I do not remember the exact fixed rate on the thirty-year conventional mortgage, but it was above the 12% level. At the time I remember

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This article was written by

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Andrew Hecht is a 35-year Wall Street veteran covering commodities and precious metals.

He runs the investing group The Hecht Commodity Report, one of the most comprehensive commodities services available. It covers the market movements of 20 different commodities and provides bullish, bearish and neutral calls; directional trading recommendations, and actionable ideas for traders. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The author always has positions in commodities markets in futures, options, ETF/ETN products, and commodity equities. These long and short positions tend to change on an intraday basis.

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