So I think that we are about to see a reversal in longer bonds. My reasons are:
- TLT chart is still bullish and today you can see a perfect doji forming right on top of the trend line shown below in a 6 month chart of the TLT.
- The 10 year chart of TLT is still bullish. It is building tension at the bottom of the channel. You could maybe point out a head and shoulders top but the right shoulder is higher than the left.
- If rates break trend and rise dramatically, then that is it. We are in for a major credit problem.
Please let me know what you think. Thank you
John