In March, the up move and subsequent retracement in Bonds was breathtaking and had the world’s attention.
In April, Bonds spent most of the month “normalizing,” at a newer, higher level.
Here in May, we’re starting to see signs that another move to the upside is materializing. Here’s a quote from JC in a recent email to All Star Chart subscribers:
If you’re looking for an uptrend, it’s in the bond market, NOT the stock market.
…the technical setup in Treasuries looks much better than it does for Stocks right now, over both long and short-term timeframes. TLT is trading just a few percent off all-time highs as price just broke above a confluence of resistance.
And here’s the chart of relative strength between $TLT and $SPY that adds further evidence of a resumption of trend for TLT: [Read more…]