Long End Outperformance Continues

JC Parets
March 28, 2019

From the desk of Tom Bruni @BruniCharting

I received a ton of great responses via Twitter and email for this week's Mystery Chart, so thank you for that.

Most said you'd be buying the breakout at current levels or on a successful retest, but a few skeptics were staying away. Let's get into the actual chart.

The Mystery Chart was an inverted daily ratio of the 1-3 Year Treasury ETF vs. the 20+ Year Treasury ETF.

Below is the corrected chart, breaking down to nearly 15-month lows as momentum gets oversold. As long as prices are below this former support, the 200-day will begin to roll over and the bias will remain to the downside.

We've preferred the long end of the curve since the failed breakout in this ratio last November, and current conditions suggest that trend remains intact over the intermediate-term.

If it ain't broke, don't fix it.

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