The Continuum

You did not hear about the red dotted line (AKA the monthly EMA 100 ‘limiter’) on the ‘Continuum’ anywhere else at the height of the Great Rotation Promotion.  Just here; though I recall Jeff Gundlach remaining firm on T bonds in the face of the hype.  Now the herds pile into T bonds as risk starts going ‘OFF’ (as so many indicators have hinted could happen).

30 year yield (AKA the ‘Continuum’) from NFTRH 281

Ah, but there is a support level we have had on radar since the yield topped out.  I already sold TLT (20+ year bonds) and will probably do the same with IEF (7-10 year) shortly, keeping bonds in the 0-3 year range (come on Janet, end ZIRP).  TLT is getting over bought and the momo herd is in motion running from stock market risk into T bonds.  Unsavory characters they are, with little more compass and even less common sense.

Also at some point, another risk ‘OFF’ asset is probably going to find support, bottom out and lead a coming phase.  We’ve got a 2014 Macro Pivot theme in play after all.  First the gold bugs have to finish getting debunked and strung up by the true believers.