• 306 days Will The ECB Continue To Hike Rates?
  • 306 days Forbes: Aramco Remains Largest Company In The Middle East
  • 308 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 708 days Could Crypto Overtake Traditional Investment?
  • 712 days Americans Still Quitting Jobs At Record Pace
  • 714 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 717 days Is The Dollar Too Strong?
  • 718 days Big Tech Disappoints Investors on Earnings Calls
  • 719 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 720 days China Is Quietly Trying To Distance Itself From Russia
  • 721 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 724 days Crypto Investors Won Big In 2021
  • 725 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 726 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 728 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 728 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 731 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 732 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 732 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 734 days Are NFTs About To Take Over Gaming?
Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

The Technical Take: TBT

I have been highlighting higher Treasury yields since October 15 (well before the heard), and I also mentioned on December 8 that the move higher in Treasury yields would "pick up steam". But every price move has its limits, and the Ultra Short Lehman 20+ Year Treasury (symbol: TBT) is no different.

Figure 1 is a daily chart of the TBT. Prices are at the upper end of a well defined trend channel, and they are hitting key pivot point resistance levels at 40.79. I would expect some consolidation at this area before prices move higher.

Figure 1. TBT/ daily
TBT Daily

Why do I think yields continue higher? This can be seen in figure 2 another daily chart of the TBT. The inverted head and shoulders bottom is nicely seen, and the resolution of this pattern should result in a price move of approximately 7 TBT points above the neckline of the price pattern.

Figure 2. TBT/ daily
TBT Daily

The measured move of 7 points plus the neckline value of 37 suggests that TBT should get to 44. This is consistent with weekly resistance levels, which are shown in figure 3.

Figure 3. TBT/ weekly
TBT Weekly


Back to homepage

Leave a comment

Leave a comment