Bonds – August 22, 2023

Last post on bonds: https://bartscharts.com/2023/07/30/bonds-july-30-2023/

Well, rates are spiking and bond prices are falling like a stone. Yup … and to think, folks, this is just wave one down. As discussed about a month ago, the target for this ending wave down is now around 110 is and then, still, the zone lower in the 98-103ish …Who knows, if you think about it.

IF my count is correct, THEN this will be a wave 2 in a bear market in bonds that could last years …and, if the recent wave 2 / b wave in the equities market is any barometer I believe this bounce will be BIG because the narrative of “inflation is under control” and the “fed is easing” and blah blah will come out and EVERYONE will think, that’s it and back we go to tinsel town. BONK.

Just counting … that ain’t gonna happen. Might we get some rate cuts in the upcoming bounce? Sure … Might rates naturally drift back down and blah blah blah blah – absolutely. Folks, it might seem that all is GREAT again.

But, it’s just wave 2 folks. Bonds have been going down for almost 3+ years … a 6 month to a year bounce – CERTAINLY in the cards.

So, I’m going to keep my TBT position ON as I’m going to ride all the waves (like UNG, cough cough – what the heck, why ain’t that thing moving …?) but I’ll be a BUYer of TLT for this bounce.

Why not? Nice bullish divergence on the weekly and monthly w/ some good targets. So, guess we’ll see.

NOTE: it’s getting pretty squirrelly out there … I’m pretty confident in these levels on the 30 year continuous chart. VERY in fact – one of them will stop this free fall. If they don’t, and the bonds fall right thru these levels – I’ll be shocked and awed. LOL … no kidding, the Bond market in a free fall is really an “other” on the good/other scale.

Author: BART

BART is a CMT and an expert a "advanced" pattern recognition used w/in the intermarket analysis discipline. He's also an accomplished Business Development Executive providing solutions to a myriad of business markets.

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